{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/815/20/#05-overview-and-background","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":"815-20","subtopic_title":"Hedging—General","section":{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"815-20-05-1","para":"05-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">The Derivatives and Hedging Topic includes several Subtopics on hedging activities:<ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\">Hedging—General (Subtopic <a altsource=\"GUID-833E0BEF-54EA-4A70-A256-093762A05A13.ditamap\" class=\"ditamap\">815-20</a>)</div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\">Fair Value Hedges (Subtopics <a altsource=\"GUID-833E0BEF-54EA-4A70-A256-093762A05A13.ditamap\" class=\"ditamap\">815-20</a> and <a altsource=\"GUID-62F59909-C0B8-4BE7-8D82-7FBC3EDF2065.ditamap\" class=\"ditamap\">815-25</a>)</div></li><li class=\"li-norm\"><span class=\"linum\">c</span><div class=\"p\">Cash Flow Hedges (Subtopics <a altsource=\"GUID-833E0BEF-54EA-4A70-A256-093762A05A13.ditamap\" class=\"ditamap\">815-20</a> and <a altsource=\"GUID-99F4B63B-41F6-4541-88AB-46B7507B0075.ditamap\" class=\"ditamap\">815-30</a>)</div></li><li class=\"li-norm\"><span class=\"linum\">d</span><div class=\"p\">Net Investment Hedges (Subtopics <a altsource=\"GUID-833E0BEF-54EA-4A70-A256-093762A05A13.ditamap\" class=\"ditamap\">815-20</a> and <a altsource=\"GUID-DEEFA3E9-8D22-4A11-8FFE-A247CBEE4173.ditamap\" class=\"ditamap\">815-35</a>).</div></li></ol></div></div>","snippet":"The Derivatives and Hedging Topic includes several Subtopics on hedging activities:\n(a) Hedging—General (Subtopic 815-20)\n(b) Fair Value Hedges (Subtopics 815-20 and 815-25)\n(c) Cash Flow Hedges (Subtopics 815-20 and 815…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d71cd37786a3f2f28cabc770ba0dde1b1f6c9329e5a35457a961b63bed47fc0d","downloaded_from":"2026-09-10T01:36:36.626Z","last_downloaded_at":"2026-09-10T01:36:36.626Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480802","source_sha256":"1bccf606366c290f963d12c04608e8fa95cb874bf6509357423364a092d256b1"}},{"citation":"815-20-05-2","para":"05-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_A66ED661-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">This Subtopic provides general guidance applicable to all three types of hedging relationships: <a href=\"/glossary/f/#fair-value-hedge\" class=\"term\" title=\"A hedge of the exposure to changes in the fair value of a recognized asset or liability, or of an unrecognized firm commitment, that are attributable to a particular risk.\"><span>fair value hedges</span></a>, <a href=\"/glossary/c/#cash-flow-hedge\" class=\"term\" title=\"A hedge of the exposure to variability in the cash flows of a recognized asset or liability, or of a forecasted transaction, that is attributable to a particular risk.\"><span>cash flow hedges</span></a>, and hedges of a net investment in a foreign operation. This Subtopic includes the basic guidance for qualifying for hedge accounting such as hedge documentation requirements, which types of risks are eligible for hedge accounting, and which items may or may not be designated as hedged items and hedging instruments. This Subtopic also provides guidance on hedge effectiveness criteria and assessments of hedge effectiveness. Financial statement presentation of the change in the <a href=\"/glossary/f/#fair-value\" class=\"term\" title=\"The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.\"><span>fair value</span></a> of a qualifying hedging instrument also is covered in this Subtopic. </span></span><span class=\"sfragment\" id=\"sfr_A66EDAA4-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">such as subsequent measurement and dedesignation of a hedging relationship. Implementation guidance and examples specific to fair value, cash flow, and net investment hedges are included in both Subtopic <a altsource=\"GUID-833E0BEF-54EA-4A70-A256-093762A05A13.ditamap\" class=\"ditamap\">815-20</a> and the specific Subtopics for each type of hedging relationship. Disclosure guidance for all hedging relationships is included in Section <a altsource=\"GUID-1E7AEC82-5A44-4DAB-9A99-3AF4A5007CA0.ditamap\" class=\"ditamap\">815-10-50</a>, and disclosure examples are included in Section <a altsource=\"GUID-AC8A45C1-7B0C-481A-88F8-C205AC6FE65C.ditamap\" class=\"ditamap\">815-10-55</a>. Incremental disclosure guidance for cash flow hedges is provided in Section <a altsource=\"GUID-3E3EF181-6B3B-4297-BB71-EAEFBB607BE0.ditamap\" class=\"ditamap\">815-30-50</a>.</span></span></div></div>","snippet":"This Subtopic provides general guidance applicable to all three types of hedging relationships: fair value hedges, cash flow hedges, and hedges of a net investment in a foreign operation. This Subtopic includes the basic…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3dd37ef6d9059f3546498acad63d9da1f7ce183eacf2e1ac144f7aa5becdce76","downloaded_from":"2026-09-10T01:36:36.626Z","last_downloaded_at":"2026-09-10T01:36:36.626Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480802","source_sha256":"1bccf606366c290f963d12c04608e8fa95cb874bf6509357423364a092d256b1"}},{"citation":"815-20-05-3","para":"05-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"><a href=\"/updates/asu-2017-12/\" class=\"xref\">Paragraph superseded by Accounting Standards Update No. 2017-12</a>.</div></div>","snippet":"Paragraph superseded by Accounting Standards Update No. 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