U.S. GAAP, Codification of Accounting Standards, ASC - Accounting Standards Codification by FASB

U.S. GAAP Codification of Accounting Standards

U.S. GAAP-Codification

IFRS International Standards

Accounting Standards, ASC

U.S. GAAP Codification of Accounting Standards
Codification Topic 825: Financial Instruments

U.S. GAAP Codification, Accounting Standards ASC,

IFRS Overview, IFRS, IAS by Topic, IFRS Dictionary

U.S. GAAP by Topic, Accounting by Topic, Securities Law Library

Codification Topic 825
Financial Instruments

Fair Value Option

   SFAS No. 159, February 2007
   " The Fair Value Option for Financial Assets and Financial Liabilities"

   Fair Value Option(FVO)
   --> Option to measure eligible items at fair value

   Eligible items: asc 825-10-15-4
   (a) Financial assets and financial liabilities
         --> except the items not eligible listed in asc 825-10-15-4
   (b) Other eligible items listed in asc 825-10-15-4

   Items not eligible: asc 825-10-15-5
   (a) Investment in a subsidiary to be consolidated
   (b) Investment in a Variable Interest Entities (VIE) to be consolidated
   (c) Other items listed in asc 825-10-15-5

Election of FVO

   FVO is applied "instrument by instrument."

   FVO is elected when the eligible item is "first recognized."

   Once FVO is elected
   --> the decision is "irrevocable."

Items Fair Value Option was elected for

Measured at "fair value"

Unrealized gains and losses are recognized in "earnings."

FVO may be elected for the following:

   1. Investment in HTM securities
   2. Investment in AFS securities
   3. Investment in equity securities for "equity method"
    --> 20% or more, but no more than 50% of ownership
   4. Financial liabilities

   HTM: Held-to-Maturity
   AFS: Available for Sale

   For HTM and AFS, refer to asc 320

International Financial Reporting Standards (IFRS)

IAS 39: Financial Instruments: Recognition and Measurement

Codification Topic 825
Financial Instruments

Subtopics of Codification Topic 825

825-10 Overall
825-20 Registration payment arrangements

Accounting Terms of Codification Topic 825-10

   Conduit debt securities
   Fair value
   Financial asset
   Financial instrument
   Financial liability
   Firm commitment
   Nonpublic entity
   Publicly traded company

Accounting Terms of Codification Topic 825-20