ASC

ASC 848-40

Fair Value Hedges

848 Reference Rate Reform

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In brief

IntermediateDerivatives and hedgingTransition and effective datesFinancial instruments

ASC 848-40 was the placeholder subtopic for fair value hedges within Topic 848, Reference Rate Reform. Every paragraph in its Overview (05), Scope (15), and Recognition (25) sections was superseded by ASU 2020-04, so the subtopic contains no operative guidance. Optional expedients and exceptions for fair value hedging relationships affected by reference rate reform reside instead in ASC 848-50 (Hedging — General) and the related hedging subtopics.

Key points (4)
  • All content of 848-40 — paragraphs 848-40-05-1, 848-40-15-1, and 848-40-25-1 through 848-40-25-9 — was superseded by Accounting Standards Update No. 2020-04.
  • Because no paragraphs remain in force, ASC 848-40 imposes no recognition, measurement, or disclosure requirements and should not be cited as authoritative support.
  • Guidance on applying optional expedients to hedging relationships affected by reference rate reform is found in the other subtopics of Topic 848 (notably 848-50), not in 848-40.
  • The subtopic number is retained in the Codification structure only as a shell; readers encountering a cross-reference to 848-40 should trace forward to the ASU 2020-04 amendments.

For students. Exam trap: a citation to 848-40 looks authoritative but is entirely superseded by ASU 2020-04 — the live reference rate reform hedging relief lives in ASC 848-50 and ASC 815. Always check whether a paragraph is marked "superseded" before relying on it.

reference rate reformfair value hedgesuperseded guidanceoptional expedientslibor transitionhedge accounting relief

Machine-generated study aid for ASC 848-40. Check the source paragraphs below.

848-40-00Status

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848-40-05Overview and Background

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848-40-15Scope and Scope Exceptions

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848-40-25Recognition

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Related subtopics