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Statement No. 80 Accounting for Futures Contracts STATUS Issue Date: August 1984 Effective Date: For futures contracts entered into after December 31, 1984. Disclosures required shall be made in financial statements for periods ending after December 15, 1984 for open futures contracts designated as hedges whether the other provisions of FAS 80 have been applied to those contracts or not. Affects: Supersedes FTB 81-1 Affected by: Paragraph 5 amended by FAS 115 Other Interpretive Release: FASB Highlights, "Futures Contracts: Guidance on Applying Statement 80," June 1985 (Resolves EITF Issue No. 85-6) Issues Discussed by FASB Emerging Issues Task Force (EITF) Affects: No EITF Issues Interpreted by: Paragraphs 4, 9, and 11 interpreted by EITF Issue No. 86-34 Related Issues: EITF Issues No. 84-7, 84-14, 84-36, 86-26, 86-28, 87-1, 87-2, 88-8, 90-17, 91-1, 91-4, 94-7, 95-2, 95-11, and 96-11 and Topic No. D-50 Abbreviations for Accounting Pronouncements FAS - FASB Statements FIN - FASB Interpretations FTB - FASB Technical Bulletins APB - APB Opinions AIN - AICPA Interpretations ARB - Accounting Research Bulletins CON - FASB Concepts EITF - EITF Issues Q&A - FASB Implementation Guides SUMMARY This Statement establishes standards of accounting for exchange-traded futures contracts (other than contracts for foreign currencies). This project was undertaken to consider two AICPA Issues Papers that concern futures contracts and because the Board was aware of diversity in practice in accounting for futures contracts. This Statement requires that a change in the market value of an open futures contract be recognized as a gain or loss in the period of the change unless the contract qualifies as a hedge of certain exposures to price or interest rate risk. Immediate gain or loss recognition is also required if the futures contract is intended to hedge an item that is reported at fair value (which frequently will be the case for futures contracts used as hedges by investment companies, pension plans, and broker-dealers). If the hedge criteria specified in this Statement are met, a change in the market value of the futures contract is either reported as an adjustment of the carrying amount of the hedged item or included in the measurement of a qualifying subsequent transaction. Enterprises are required to cease accounting for a contract as a hedge if high correlation of changes in the market value of the futures contract and the effects of price or interest rate changes on the hedged item has not occurred. This Statement is effective for futures contracts entered into after December 31, 1984, with earlier application encouraged in financial statements that have not been previously issued. Copyright by Financial Accounting Standards Board. All Rights Reserved. Used by Permission.
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