ASC

ASC 848-20

Contract Modifications

848 Reference Rate Reform

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In brief

IntermediateTransition and effective datesFinancial instrumentsDerivatives and hedging

ASC 848-20 was the placeholder subtopic for contract modifications under Reference Rate Reform, but every paragraph in it has been superseded — Sections 05, 15, 35, and 55 were all superseded by ASU 2020-04 (with 848-20-15-2A superseded by ASU 2021-01). As a result, 848-20 contains no operative guidance; the optional expedients for modifications of contracts affected by reference rate reform now reside in ASC 848-20's replacement guidance within Topic 848 (principally 848-10 scope and the successor modification/hedging subtopics). Students should treat this subtopic as an empty shell and look to the current Topic 848 guidance instead.

Key points (5)
  • Every paragraph shown in 848-20 (05-1; 15-1 through 15-11; 35-1 through 35-15; 55-1 and 55-2) is marked 'Paragraph superseded by Accounting Standards Update No. 2020-04.'
  • Paragraph 848-20-15-2A was separately superseded by Accounting Standards Update No. 2021-01, which addressed derivatives affected by the discounting transition.
  • Because the Overview and Background (05), Scope (15), Subsequent Measurement (35), and Implementation Guidance and Illustrations (55) sections are all superseded, 848-20 imposes no recognition, measurement, or disclosure requirements.
  • The optional expedients for contract modifications made because of reference rate reform must be located in the current, non-superseded portions of Topic 848 rather than in 848-20.
  • Topic 848 as a whole provides elective, temporary relief allowing modifications tied to reference rate reform to be accounted for as a continuation of the existing contract rather than as an extinguishment or new contract.

For students. Do not cite 848-20 paragraphs as authority — they were all superseded by ASU 2020-04 (and 15-2A by ASU 2021-01); the common mistake is quoting stale codification text that no longer carries any requirement. Go to the live Topic 848 sections for the reference rate reform expedients.

reference rate reformcontract modificationssuperseded guidanceoptional expedientslibor transitiondiscounting transitionelective relief

Machine-generated study aid for ASC 848-20. Check the source paragraphs below.

848-20-00Status

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848-20-05Overview and Background

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848-20-15Scope and Scope Exceptions

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848-20-35Subsequent Measurement

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848-20-55Implementation Guidance and Illustrations

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Related subtopics