Derivatives: Characteristics and Scope Exceptions

Understanding derivative accounting is essential for professionals involved in financial reporting and risk management. This ASC 815 CPE course provides a structured approach to identifying, classifying, and accounting for derivatives under U.S. GAAP. This eLearning course (1.0 CPE credits) covers the fundamental concepts of derivative instruments, their key characteristics, and the scope exceptions that determine whether a financial contract in in the scope of the guidance. The course also provides an introduction to fair value measurement under ASC 820, ensuring a comprehensive understanding of how derivatives impact financial statements.

The course begins with an introduction to derivatives. This includes common types of derivative instruments like forwards, options, swaps, and futures. Secondly, you learn how companies use these instruments as part of its risk management strategy. After that, you learn the three characteristics that must be met for an instrument to be considered a derivative instrument under ASC 815. Afterwards, you evaluate scope exceptions and determine which instruments are in scope and which are out of scope. Later, you explore accounting for derivatives, which includes fair value measurement under ASC 820. Finally, the ASC 815 CPE  course concludes with how to report derivatives in the financial statements under U.S. GAAP.

Topics covered include:

• Introduction to derivatives
• Accounting definition of derivatives, including the three characteristics of a derivative under ASC 815
• Scope exceptions to derivative accounting
• Accounting for derivative instruments

Designed for accountants, auditors, and financial professionals, this ASC 815 CPE course helps you confidently apply the guidance in U.S. GAAP, recognize scope exceptions, and comply with fair value measurement under ASC 820.

Enroll today to earn ASC 815 CPE credits and enhance your expertise in derivative accounting! Interested in a deeper dive into derivatives and hedging? Make sure to explore our course collections below.

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

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

• Recognize common derivative instrument types  
• Identify the characteristics of a derivative instrument under ASC 815 
• Recognize scope exceptions to derivative accounting under ASC 815 
• Recall the accounting for derivative instruments