ASC 815: Accounting for Centrally-Cleared Derivatives

Many over-the-counter derivative financial instruments are required to be settled through a separate third-party clearing organization, which requires parties to the instrument to make variation margin payments. These are often referred to as centrally-cleared derivatives. How do these arrangements work? And what are the accounting considerations under U.S. GAAP? And more specifically, the guidance in ASC 815 for derivative instruments? This short centrally-cleared derivatives CPE-eligible eLearning course (0.2 CPE) provides an overview of these arrangements. After that, it provides learners with an example arrangement to consider the proper accounting and presentation.

Topics covered in this centrally-cleared derivatives CPE course include:

• Overview of financial derivatives under ASC 815
• Centrally-cleared OTC derivatives
• Example of a centrally-cleared derivative
• Accounting and presentation issues

If you’re looking for a quick and fun way to learn about centrally-cleared derivatives, all while earning CPE, this course is for you! It's short and focused, with easy-to-understand explanations and a detailed example to help bring the accounting and reporting considerations to life.

Looking for additional content on accounting for derivates under U.S. GAAP? Check out these more comprehensive course offerings from GAAP Dynamics:

• Derivatives: Characteristics and Scope Exceptions
• Derivatives: Embedded Derivatives

Interested in group discounts for your team? Contact us to learn more.

By the end of this course, you should be able to: 

• Recall how derivative financial instruments that are cleared through a central clearing organization are accounted for and presented in the financial statements