# ASC 825-10-55: Financial Instruments — Overall — 55 Implementation Guidance and Illustrations Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/825/10/#55-implementation-guidance-and-illustrations) 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): 2026-09-10T01:44:34.825Z to 2026-09-10T01:44:34.825Z Record version: sha256:9e6588212da049bf0aabe3616370250c8d54675a66437f76c91253c2dbd8fab4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-10-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/825/10/#55-implementation-guidance-and-illustrations) SEC content: no #### Implementation Guidance ##### [825-10-55-1](https://asc.understandingaccounting.org/asc/825/10/#825-10-55-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:34.825Z to 2026-09-10T01:44:34.825Z Record version: sha256:c20fd652c973af2552edd1f8bd25964d55fd8eaeca452eb2974f840da37d32ff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The terms of certain loan products may increase a reporting entity's exposure to credit risk and thereby may result in a concentration of credit risk as that term is used in this Subtopic, either as an individual product type or as a group of products with similar features. Possible shared characteristics on which significant concentrations may be determined include, but are not limited to, the following: 1. a Borrowers subject to significant payment increases 2. b Loans with terms that permit negative amortization 3. c Loans with high loan-to-value ratios. ##### [825-10-55-2](https://asc.understandingaccounting.org/asc/825/10/#825-10-55-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:34.825Z to 2026-09-10T01:44:34.825Z Record version: sha256:3d094c8880debe6c0fd36a2770a0ee1f75a047abb4b071fcf4971323a7c5fc6f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Judgment is required to determine whether loan products have terms that give rise to a concentration of credit risk. Furthermore, an entity may disclose how underwriting procedures are designed to control the credit risk that may arise from future payment increases. ##### [825-10-55-3](https://asc.understandingaccounting.org/asc/825/10/#825-10-55-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:34.825Z to 2026-09-10T01:44:34.825Z Record version: sha256:01c3df7ef39d7770c815f77b723a30ca2975bb35b608bbd90434503e1f0e6543 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [825-10-55-4](https://asc.understandingaccounting.org/asc/825/10/#825-10-55-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:34.825Z to 2026-09-10T01:44:34.825Z Record version: sha256:80ae74a446ff8df654763725e4f1469da2b277127b3f9b391e84c6bcf1701e84 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [825-10-55-5](https://asc.understandingaccounting.org/asc/825/10/#825-10-55-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:34.825Z to 2026-09-10T01:44:34.825Z Record version: sha256:7e07ba821ef062fafa0608bd1593a8b5ca2b7e41a8526f28510f16236d7ce6da Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ### Fair Value Option #### Illustrations ##### [825-10-55-6](https://asc.understandingaccounting.org/asc/825/10/#825-10-55-6) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:34.825Z to 2026-09-10T01:44:34.825Z Record version: sha256:6d7031f168f87e4424f0eeffaed9c433548fa82d1992993d4725368b792104d8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following Cases illustrate selected disclosure requirements for items reported at [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.") under this Subtopic: 1. a The [Fair Value Option Subsection](https://asc.understandingaccounting.org/asc/825/10/#50-disclosure) of 825-10-50 disclosures with voluntary integration of the [General Subsection](https://asc.understandingaccounting.org/asc/825/10/#50-disclosure) of 825-10-50 disclosures (Case A) 2. b The [Fair Value Option Subsection](https://asc.understandingaccounting.org/asc/825/10/#50-disclosure) of 825-10-50 disclosures without voluntary integration of the [General Subsection](https://asc.understandingaccounting.org/asc/825/10/#50-disclosure) of 825-10-50 disclosures (Case B). ##### [825-10-55-7](https://asc.understandingaccounting.org/asc/825/10/#825-10-55-7) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:34.825Z to 2026-09-10T01:44:34.825Z Record version: sha256:a7dc84e22382c78a957a5367b479a293fd6e25dc576dace7e1244305837dc199 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Cases A and B represent suggested forms for presenting disclosure information. While the suggested forms of presentation illustrate selected required disclosures, the suggested forms of presentation are not mandated by this Subtopic. Aggregation of related fair value disclosures is encouraged but not required. ##### [825-10-55-8](https://asc.understandingaccounting.org/asc/825/10/#825-10-55-8) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:34.825Z to 2026-09-10T01:44:34.825Z Record version: sha256:79141296d740b59e1997870ff42924ea4f41afa20ff73e0aac66eafaa24c68b9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The statement of financial position for Entity XYZ as of December 31, 20X1, is provided to assist in understanding the illustrative fair value disclosures in Cases A and B. - ![](https://asc.understandingaccounting.org/asc-img/GUID-A9646151-DBF5-4ECF-B2B0-C0068BF139C3-low.gif) ($ in 000s) Description "At December 31, 20X1" Assets Cash and due from banks $38 Deposits with banks 22 Fed funds sold and securities purchased under resale agreements 134 Securities borrowed 75 Trading debt securities 115 Debt securities available-for-sale (net of allowance for credit losses of $3) 75 Debt securities held-to-maturity $34 Allowance for credit losses on held-to-maturity debt securities (2) "Debt securities held-to-maturity, net of allowance for credit losses" 32 Loans and lease receivables ($150 at fair value) $560 Allowance for credit losses on loan and lease receivables (10) "Loans and lease receivables, net of allowance for credit losses" 550 Derivatives 60 Equity investments 125 Premises and equipment 10 Other assets 20 Total assets " $1,256 " Liabilities Non-interest-bearing deposits $143 Interest-bearing deposits 412 Fed funds purchased and securities sold under repurchase agreements 130 Accounts payable 110 Short-term borrowings 128 Long-term debt ($60 at fair value) 200 Total liabilities " 1,123 " Shareholders' equity "Common stock (authorized 5,000,000 shares; issued 3,550,000 shares)" 4 Capital surplus 88 Retained earnings 42 Accumulated other comprehensive income (loss) (1) Total shareholders' equity 133 Total liabilities and shareholders' equity " $1,256 " ##### [825-10-55-9](https://asc.understandingaccounting.org/asc/825/10/#825-10-55-9) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:34.825Z to 2026-09-10T01:44:34.825Z Record version: sha256:f811bcda34e0baa65a716179f8949062ceec7ae7735c29755500de1e875d0b82 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The objective is to provide information about all of the following: 1. a Assets and liabilities measured at fair value on a recurring basis (as required by Subtopic 820-10) 2. b Changes in fair values of assets and liabilities for which the fair value option has been elected in a manner that relates to the statement of financial position (as required by this Subtopic) 3. c Fair value estimates and corresponding carrying amounts for major categories of assets and liabilities that include items measured at fair value on a recurring basis (in accordance with the [General Subsection](https://asc.understandingaccounting.org/asc/825/10/#50-disclosure) of 825-10-50). ##### [825-10-55-10](https://asc.understandingaccounting.org/asc/825/10/#825-10-55-10) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:34.825Z to 2026-09-10T01:44:34.825Z Record version: sha256:e6cc45dd144734f1491a8b1adfa61e9b49af6bf648ae144aa6a5a8fad81a715b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table represents the fair value tabular disclosure required by paragraph [820-10-50-2(b)](https://asc.understandingaccounting.org/asc/820/10/#820-10-50-2), supplemented to do both of the following: 1. a Provide information about where in the income statement changes in fair values of assets and liabilities reported at fair value are included in earnings 2. b Voluntarily integrate selected disclosures required annually by the [General Subsection](https://asc.understandingaccounting.org/asc/825/10/#50-disclosure) of 825-10-50. Disclosures required by paragraphs [825-10-50-28(c)](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-28) and [825-10-50-30(a)](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-30) are illustrated in the narrative disclosure that follows the table. - ![](https://asc.understandingaccounting.org/asc-img/GUID-C05AF468-3E0A-48BD-AEF2-CA7CC0E98E54-low.gif) ($ in 000s) "Fair Value Measurements at December 31, 20X1, Using" "Changes in Fair Values for the 12-Month Period Ended December 31, 20X1, for Items Measured at Fair Value Pursuant to Election of the Fair Value Option" Description Total Carrying Amount in Statement of Financial Position 12/31/X1 (a) Fair Value Estimate 12/31/X1 (b) Assets or Liabilites Measured at Fair Value 12/31/X1 Quoted Prices in Active Markets for Identical Assets (Level 1) "Significant Other Observable Inputs (Level 2)" "Significant Unobservable Inputs (Level 3)" Trading Gains and Losses Other Gains and Losses Interest lncome on Loans Interest Expense on Long-Term Debt Total Changes in Fair Values Included in Current-Period Earnings Total Changes in Fair Values Included in Other Comprehensive Income Trading debt securities $115 $115 $115 $105 $10 $10 (c) $10 Available-for-sale debt securities, net 75 75 75 75 "Loans, net" 400 412 150 - 100 $50 $(3) $10 7 Derivatives 60 60 60 25 15 20 5 (c) 5 Equity investments 125 125 125 \* 50 25 50 (18) (18) Long-term debt (200) (206) (60) (40) (20) 13 $(4) 5 4 (\*) Includes investments that would otherwise be accounted for under the equity method of accounting. "Loans are included in loans and lease receivables in the statement of financial position. As of December 31, 20X1, approximately $160,000 of lease receivables are included in loans and lease receivables in the statement of financial position and are not eligible for the fair value option." (a) This column discloses carrying amount information required annually by this Subtopic only for major categories of assets and liabilities that include items measured at fair value. (b) "This column discloses fair value estimates required annually by this Subtopic only for major categories of assets and liabilities that include items measured at fair value. This Subtopic requires an entity to disclose fair value estimates and related carrying amounts for all financial instruments within the scope of this Subtopic. Paragraph 825-10-50-12 requires that if an entity discloses the fair value of financial instruments in more than a single note, one of the notes include a summary table (not presented in this Example)." (c) This Subtopic does not require disclosure of the amounts in the Trading Gains and Losses column nor does it preclude disclosure of these amounts. These amounts are shown for completeness. ##### [825-10-55-11](https://asc.understandingaccounting.org/asc/825/10/#825-10-55-11) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:34.825Z to 2026-09-10T01:44:34.825Z Record version: sha256:8b642a69920c782043a1b257ffafa6a0b5948f08f960c8fc5c6ea3e58e707245 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity might provide either of the following additional disclosures required by paragraph [825-10-50-28(a) through (b)](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-28) after the following table: 1. a Management's reasons for electing a fair value option for each eligible item or group of similar eligible items 2. b If the fair value option is elected for some but not all eligible items within a group of similar eligible items, both of the following: 1. 1 A description of those similar items and the reasons for partial election 2. 2 Information to enable users to understand how the group of similar items relates to individual line items on the statement of financial position. ##### [825-10-55-12](https://asc.understandingaccounting.org/asc/825/10/#825-10-55-12) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:34.825Z to 2026-09-10T01:44:34.825Z Record version: sha256:389c8865c025c7c86dc2887c65995520a4de5f67dacdb428837ca6234abad0b4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table illustrates an alternative presentation that does not integrate disclosures required annually by this Subtopic or the additional gain and loss amounts voluntarily displayed in the table in Case A. The following table represents the fair value hierarchy table set forth in Topic 820, supplemented to provide information about where in the income statement changes in fair values of assets and liabilities for which the fair value option has been elected are included in earnings. Disclosures required by paragraphs [825-10-50-28(c)](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-28) and [825-10-50-30(a)](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-30) are illustrated in the narrative disclosure that follows the table. - ![](https://asc.understandingaccounting.org/asc-img/GUID-8196356D-EAD3-49C0-A61F-F946DD7EA76E-low.gif) ($ in 000s) "Fair Value Measurements at December 31, 20X1, Using" "Changes in Fair Values for the 12-Month Period Ended December 31, 20X1, for Items Measured at Fair Value Pursuant to Election of the Fair Value Option" Description Fair Value Measure-ments 12/31/X1 "Quoted Prices in Active Markets for Identical Assets (Level 1)" "Significant Other Observable Inputs (Level 2)" "Significant Unobservable Inputs (Level 3)" Other Gains and Losses Interest Income on Loans Interest Expense on Long-Term Debt Total Changes in Fair Values Included in Current- Period Earnings Total Changes in Fair Values Included in Other Comprehensive Income Trading debt securities $115 $105 $10 Available-for-sale debt securities 75 75 Loans 150 - 100 $50 $3 $10 $7 Derivatives 60 25 15 20 Equity investments\* 125 50 25 50 (18) (18) Long-term debt (60) (40) (20) 13 $(4) 5 4 (\*) Represents investments that would otherwise be accounted for under the equity method of accounting. "Loans are included in loans and lease receivables in the statement of financial position. As of December 31, 20X1, approximately $160,000 of lease receivables are included in loans and lease receivables in the statement of financial position and are not eligible for the fair value option." ##### [825-10-55-13](https://asc.understandingaccounting.org/asc/825/10/#825-10-55-13) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:34.825Z to 2026-09-10T01:44:34.825Z Record version: sha256:ce94524aab1dbd19f90b965bf1a53d24dcfc4cb5dd54d830cb8d6937c58a4768 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity might provide either of the following additional disclosures required by paragraph [825-10-50-28(a) through (b)](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-28) after the table: 1. a Management's reasons for electing a fair value option for each eligible item or group of similar eligible items 2. b If the fair value option is elected for some but not all eligible items within a group of similar eligible items, both of the following: 1. 1 A description of those similar items and the reasons for partial election 2. 2 Information to enable users to understand how the group of similar items relates to individual line items on the statement of financial position.