# ASC 815-958-25: Derivatives and Hedging — Not-for-Profit Entities — 25 Recognition

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/815/958/#25-recognition)

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): 2026-09-10T01:41:17.922Z to 2026-09-10T01:41:17.922Z

Record version: sha256:84f8c7ce56030ca2858cad11b4d8853867aa9c853b8bd6d4ee089743646a363f

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 815-958-25: 25 Recognition

[Read section](https://asc.understandingaccounting.org/asc/815/958/#25-recognition)

SEC content: no

##### [815-958-25-1](https://asc.understandingaccounting.org/asc/815/958/#815-958-25-1)

Pending content: yes

Source downloaded (UTC): 2026-09-10T01:41:17.922Z to 2026-09-10T01:41:17.922Z

Record version: sha256:5989292a7e38c0f3c1cda36a245e91179f21d3f6a5848061a192913d798a5360

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


See paragraphs

[958-30-25-7 through 25-14](https://asc.understandingaccounting.org/asc/958/30/#958-30-25-7)

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](https://asc.understandingaccounting.org/asc/815/15/#815-15-25-1).

Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:

[105-10-65-10](https://asc.understandingaccounting.org/asc/105/10/#105-10-65-10)

<table class="asc-table" frame="top"><tbody><tr><td class="entry"><em class="ph i"><strong class="ph b">Editor's Note</strong>: The heading noted below will be added upon transition to precede paragraph 958-815-25-1. The content of the paragraph will not change.</em></td></tr><tr><td class="entry">&gt; <strong class="ph b">Embedded Derivatives</strong></td></tr></tbody></table>

See paragraphs

[958-30-25-7 through 25-14](https://asc.understandingaccounting.org/asc/958/30/#958-30-25-7)

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](https://asc.understandingaccounting.org/asc/815/15/#815-15-25-1).

#### Hedge Documentation and Effectiveness

##### [815-958-25-2](https://asc.understandingaccounting.org/asc/815/958/#815-958-25-2)

Pending content: yes

Source downloaded (UTC): 2026-09-10T01:41:17.922Z to 2026-09-10T01:41:17.922Z

Record version: sha256:290c192c8be4a41660c45b3faff51693f0ffc5aa413e220d0f3b99d70808e8b2

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:

[105-10-65-10](https://asc.understandingaccounting.org/asc/105/10/#105-10-65-10)See paragraphs [815-20-25-3A](https://asc.understandingaccounting.org/asc/815/20/#815-20-25-3A) and [815-20-25-143](https://asc.understandingaccounting.org/asc/815/20/#815-20-25-143) about the timing of hedge documentation and hedge effectiveness assessments for certain not-for-profit entities.