ASU 2025-07 — Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606): Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract

The amendments in this Update address stakeholders’ concerns about (1) the application of derivative accounting to contracts with features based on the operations or activities of one of the parties to the contract and (2) the diversity in accounting for share-based noncash consideration from a customer that is consideration for the transfer of goods or services.

This Accounting Standards Update is the final version of Proposed Accounting Standards Update 2024-ED100—Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606), which has been deleted.

For more information, see the following:

Issued: September 29, 2025