# ASC 815-20-05: Derivatives and Hedging — Hedging—General — 05 Overview and Background Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/815/20/#05-overview-and-background) 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): 2026-09-10T01:36:36.626Z to 2026-09-10T01:36:36.626Z Record version: sha256:5e9fc7b0585de6caa272ad9548e9f8850f2be0c7821518f653f35bfc891c29bb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 815-20-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/815/20/#05-overview-and-background) SEC content: no ##### [815-20-05-1](https://asc.understandingaccounting.org/asc/815/20/#815-20-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:36:36.626Z to 2026-09-10T01:36:36.626Z Record version: sha256:d71cd37786a3f2f28cabc770ba0dde1b1f6c9329e5a35457a961b63bed47fc0d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Derivatives and Hedging Topic includes several Subtopics on hedging activities: 1. a Hedging—General (Subtopic 815-20) 2. b Fair Value Hedges (Subtopics 815-20 and 815-25) 3. c Cash Flow Hedges (Subtopics 815-20 and 815-30) 4. d Net Investment Hedges (Subtopics 815-20 and 815-35). ##### [815-20-05-2](https://asc.understandingaccounting.org/asc/815/20/#815-20-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:36:36.626Z to 2026-09-10T01:36:36.626Z Record version: sha256:3dd37ef6d9059f3546498acad63d9da1f7ce183eacf2e1ac144f7aa5becdce76 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides general guidance applicable to all three types of hedging relationships: [fair value hedges](https://asc.understandingaccounting.org/glossary/f/#fair-value-hedge "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."), [cash flow hedges](https://asc.understandingaccounting.org/glossary/c/#cash-flow-hedge "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."), 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 [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "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.") of a qualifying hedging instrument also is covered in this Subtopic. 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 815-20 and the specific Subtopics for each type of hedging relationship. Disclosure guidance for all hedging relationships is included in Section 815-10-50, and disclosure examples are included in Section 815-10-55. Incremental disclosure guidance for cash flow hedges is provided in Section 815-30-50. ##### [815-20-05-3](https://asc.understandingaccounting.org/asc/815/20/#815-20-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:36:36.626Z to 2026-09-10T01:36:36.626Z Record version: sha256:f89cb9270c38a2a880788655daa5dda1797ed2a687008ea269245d90c7e2db86 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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