# ASC 815-45-05: Derivatives and Hedging — Weather Derivatives — 05 Overview and Background

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/815/45/#05-overview-and-background)

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## ASC 815-45-05: 05 Overview and Background

[Read section](https://asc.understandingaccounting.org/asc/815/45/#05-overview-and-background)

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##### [815-45-05-1](https://asc.understandingaccounting.org/asc/815/45/#815-45-05-1)

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This Subtopic addresses the financial accounting and reporting for [weather derivatives](https://asc.understandingaccounting.org/glossary/w/#weather-derivative "A forward-based or option-based contract for which settlement is based on a climatic or geological variable. One example of such a variable is the occurrence or nonoccurrence of a specified amount of snow at a specified location within a specified period of time.") within its scope.