Financial Instruments
Overview
ASC 825 comprises two Subtopics, below is an overview of each Subtopic.
825-10 Overall
ASC 825-10 notes that it provides “provide guidance on credit losses on financial instruments with off-balance-sheet credit risk and certain disclosures about financial instruments.” Guidance is also included on the fair value option, including:
- Circumstances in which entities may choose, at specified election dates, to measure eligible items at fair value (the fair value option)
- Presentation and disclosure requirements designed to facilitate comparisons between entities that choose different measurement attributes for similar types of assets and liabilities.
825-20 Registration Payment Arrangements
ASC 825-20 notes the following:
An entity may issue financial instruments (for example, equity shares, warrants, or debt instruments) that are subject to a registration payment arrangement. This Subtopic provides guidance related to such arrangements.