ASC

ASC 815-958

Not-for-Profit Entities

815 Derivatives and Hedging

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In brief

IntermediateDerivatives and hedgingNot-for-profitRecognitionFinancial instruments

ASC 815-958 is a link-only subtopic: it contains no substantive rules of its own but points not-for-profit entities to the derivatives guidance that applies to them. It directs readers to 958-30-25-7 through 25-14 to decide whether an obligation arising from an irrevocable split-interest agreement contains an embedded derivative requiring bifurcation under 815-15-25-1, and (upon transition) to 815-20-25-3A and 815-20-25-143 for the timing of hedge documentation and hedge effectiveness assessments by certain NFPs.

Key points (6)
  • The Subtopic's stated purpose is only to provide links to other guidance — on embedded derivatives in irrevocable split-interest agreement obligations and, upon transition, on NFP hedge documentation/effectiveness timing (815-958-05-1).
  • Scope follows the Overall Not-for-Profit Subtopic, Section 958-10-15 (815-958-15-1).
  • To determine whether an obligation arising from an irrevocable split-interest agreement contains an embedded derivative warranting separate accounting under 815-15-25-1, apply 958-30-25-7 through 25-14 (815-958-25-1).
  • Upon transition, see 815-20-25-3A and 815-20-25-143 regarding the timing of hedge documentation and hedge effectiveness assessments for certain not-for-profit entities (815-958-25-2).
  • Example 2 at 958-30-55-6 through 55-29 provides eight cases illustrating how 958-30-25-7 through 25-14 apply to various split-interest agreements (815-958-55-1).
  • The transition date for the added hedging-link content is December 16, 2026, with transition guidance in 105-10-65-10.

For students. This subtopic is a signpost, not a rulebook — the real analysis lives in 958-30 (split-interest agreements) and 815-15 (bifurcation). A common mistake is to assume NFPs have special derivative measurement rules; the only NFP-specific relief here is the deferred timing of hedge documentation and effectiveness assessments.

embedded derivativeirrevocable split-interest agreementbifurcationhedge documentationhedge effectiveness assessmentnot-for-profit entitylink-only subtopic

Machine-generated study aid for ASC 815-958. Check the source paragraphs below.

815-958-00Status

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815-958-00-1
The following table identifies the changes made to this Subtopic.
Paragraph Action Accounting Standards Update Date
958-815-05-1 Amended Accounting Standards Update No. 2025-12 12/17/2025
958-815-25-1 Amended Accounting Standards Update No. 2025-12 12/17/2025
958-815-25-2 Added Accounting Standards Update No. 2025-12 12/17/2025

815-958-05Overview and Background

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815-958-05-1
This Subtopic only provides a link to guidance on embedded derivatives in an obligation arising from an irrevocable split-interest agreement.
Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:
105-10-65-10This Subtopic provides a link to guidance on embedded derivatives in an obligation arising from an irrevocable split-interest agreement and guidance on hedge documentation and hedge effectiveness assessments for certain not-for-profit entities.

815-958-15Scope and Scope Exceptions

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Overall Guidance

815-958-15-1
This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic (see Section 958-10-15).

815-958-25Recognition

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815-958-25-1
See paragraphs
958-30-25-7 through 25-14
to determine whether an obligation arising from an irrevocable split-interest agreement contains an embedded derivative that warrants separate accounting under paragraph 815-15-25-1.
Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:
105-10-65-10
Editor's Note: The heading noted below will be added upon transition to precede paragraph 958-815-25-1. The content of the paragraph will not change.
> Embedded Derivatives
See paragraphs
958-30-25-7 through 25-14
to determine whether an obligation arising from an irrevocable split-interest agreement contains an embedded derivative that warrants separate accounting under paragraph 815-15-25-1.

Hedge Documentation and Effectiveness

815-958-25-2
Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:
105-10-65-10See paragraphs 815-20-25-3A and 815-20-25-143 about the timing of hedge documentation and hedge effectiveness assessments for certain not-for-profit entities.

815-958-55Implementation Guidance and Illustrations

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815-958-55-1
See Example 2 (paragraphs
958-30-55-6 through 55-29
) for 8 cases that provide an understanding of the applicability of paragraphs
958-30-25-7 through 25-14
to various split-interest agreements.

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