3.2 Initial Recognition and Measurement
ASC 815-10
25-1 An entity
shall recognize all of its derivative instruments in its
statement of financial position as either assets or
liabilities depending on the rights or obligations under the
contracts.
30-1 All
derivative instruments shall be measured initially at fair
value.
Derivatives within the scope of ASC 815 (that do not qualify for any scope exception)
must be recognized on the balance sheet as either assets or liabilities. Derivative
instruments are initially recognized at fair value, which is measured by using the
principles under ASC 820.
See Chapter 9 of Deloitte’s Roadmap Fair Value Measurements and Disclosures (Including the Fair Value
Option) for additional discussion on this topic.