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Complex Financial Instruments, ASC 815

Hedging Activities

This essential accounting standard, developed by the Financial Accounting Standards Board (FASB), sets the groundwork for reporting derivative instruments and hedging activities. Many firms deploy derivatives to hedge against specific risks, such as interest rate fluctuations, currency shifts, or commodity price movements. When such activities are undertaken, it’s essential to account for them appropriately. 

Objective provides expertise in ensuring that these hedging activities are aligned with ASC 815, offering transparency and reduced financial exposure. Our dedication to transparent and compliant financial reporting ensures that we reflect these instruments at their true fair value. Trust in our expertise means your financial statements remain accurate and clear, safeguarding your business from potential risks associated with financial ambiguities. Your financial clarity is our commitment.

Embedded Derivatives​

Contracts that aren’t primarily financial in nature might have embedded derivatives that require separate accounting.

Objective’s depth of knowledge aids in identifying, separating, and valuating these instruments, ensuring that financial statements are not only accurate but also ASC 815 compliant.

Convertible Securities

Instruments like convertible bonds or notes present both an equity and debt component, demanding careful valuation and reporting. 

Objective lends its proficiency in dissecting the complexities of such instruments, capturing their true financial implications while staying within the purview of ASC 815.

Structured Products

Investment vehicles that include derivatives, such as structured notes or collateralized debt obligations, require precise accounting. 

Leveraging Objective’s insights, businesses can appropriately account for and disclose the risks and rewards associated with these intricate products.

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