ASC

ASC 848-50

Cash Flow Hedges

848 Reference Rate Reform

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In brief

IntermediateDerivatives and hedgingTransition and effective datesFinancial instruments

ASC 848-50 was the Reference Rate Reform subtopic addressing cash flow hedges, but every paragraph in it has been superseded (almost entirely by ASU 2020-04, with one paragraph superseded by ASU 2021-01). As codified today it contains no operative guidance; the optional expedients and exceptions for hedging relationships affected by reference rate reform reside in the surviving subtopics of Topic 848.

Key points (5)
  • Every paragraph of 848-50 (Sections 05, 15, 25, and 35) is marked 'Paragraph superseded by Accounting Standards Update No. 2020-04,' so the subtopic imposes no current requirements.
  • Paragraph 848-50-35-19A was superseded separately by Accounting Standards Update No. 2021-01, which addressed derivatives affected by the discounting transition.
  • No overview (Section 05), scope (Section 15), recognition (Section 25), or subsequent measurement (Section 35) guidance survives in this subtopic.
  • Relief for cash flow hedges affected by reference rate reform must be researched in the remaining Topic 848 subtopics and Topic 815, not in 848-50.
  • Superseded paragraph numbers are retained only as historical placeholders; citing them as authority is an error.

For students. The trap here is citing 848-50 as live authority: the entire subtopic is superseded, so any reference rate reform cash flow hedge question must be answered from the remaining Topic 848 subtopics (and Topic 815). Spotting a fully superseded subtopic is itself a research skill.

reference rate reformcash flow hedgessuperseded guidanceoptional expedientslibor transitiondiscounting transitionhedge accounting relief

Machine-generated study aid for ASC 848-50. Check the source paragraphs below.

848-50-00Status

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848-50-05Overview and Background

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848-50-15Scope and Scope Exceptions

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848-50-25Recognition

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848-50-35Subsequent Measurement

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