2.1 Overview
ASC 815-10
15-1 This Subtopic
applies to all entities. Some entities, such as
not-for-profit entities (NFPs) and defined benefit pension
plans, do not report earnings as a separate caption in a
statement of financial performance. The application of this
Subtopic to those entities is set forth in paragraphs
815-10-35-3, 815-20-15-1, 815-25-35-19, and 815-30-15-3.
15-2 The scope of this
Subtopic relates primarily to whether a contract meets the
definition of a derivative instrument (see paragraph
815-10-15-83). However, as discussed in this Subsection,
some contracts that meet the definition of derivative
instrument are not within the scope of this Subtopic, while
other contracts that do not meet the definition of
derivative instrument are within the scope of this Subtopic.
Some of the disclosure requirements in Section 815-10-50
apply to nonderivative instruments that are designated and
qualify as hedging instruments pursuant to paragraphs
815-20-25-58 and 815-20-25-66.
The guidance in ASC 815 applies to all entities. Entities that do not report earnings
separately in their financial statements (e.g., nonprofit entities and defined
benefit pension plans) must recognize the gain or loss on a nonhedging derivative
instrument as a change in their net assets.
ASC 815 focuses on instruments and contracts that meet the definition of a derivative
(see Chapter 1). However, certain instruments
and contracts meet the definition of a derivative as described in ASC 815-10-15-83
but are appropriately excluded from the scope of the guidance in ASC 815 if any of
the available scope exceptions apply (see Section
2.3). Conversely, certain instruments that do not meet the definition
of a derivative are actually included in the scope of ASC 815 and therefore subject
to its requirements (see Section 2.2).