Cheat Sheet: Hedge Accounting (ASC 815)

Hedging aligns the economic impact of a derivative impact with the accounting. However, in order to achieve this result, an entity must “qualify” to use it. ASC 815, Derivatives and Hedging contains the relevant guidance for U.S. GAAP. This hedge accounting cheat sheet explains, based on hedging strategy type, where the special accounting treatment is used. Additionally, it includes examples of each type of hedging strategy.