Financial Instruments
Example 3.4: Disclosure by Type of Financial Instrument and Type of Counterparty3
The following table illustrates how an entity might provide the quantitative disclosure requirements in ASC 210‐20‐50‐3 by type of instrument and by counterparty.
Offsetting of Financial Assets and Derivative Assets—As of December 31, 20X0
| Description | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statement of Financial Position | Net Amounts of Assets Presented in the Statement of Financial Position |
| Derivatives | $100,000 | $(90,000) | $10,000 |
| Reverse repurchase, securities, borrowings, and similar arrangements | $90,000 | – | $90,000 |
| Other financial instruments | – | – | – |
| Total | $190,000 | $(90,000) | $100,000 |
Financial Assets, Derivative Assets, and Collateral Held by Counterparty—As of December 31, 20X0
| Gross Amounts Not Offset in the Statement of Financial Position | ||||
| Net Amounts of Assets Presented in the Statement of Financial Position | Financial Instruments | Cash Collateral Received | Net Amount | |
| Counterparty A | $10,000 | $ – | $ – | $ 10,000 |
| Counterparty B | $90,000 | (90,000) | – | – |
| Other | – | – | – | – |
| Total | $100,000 | $(90,000) | $ – | $10,000 |
Offsetting of Financial Liabilities and Derivative Liabilities—As of December 31, 20X0
| Description | Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statement of Financial Position | Net Amounts of Liabilities Presented in the Statement of Financial Position |
| Derivatives | $80,000 | $(80,000) | $ – |
| Repurchase, securities lending, and similar arrangements | 80,000 | – | 80,000 |
| Other financial instruments | – | – | – |
| Total | $160,000 | $(80,000) | $80,000 |
Financial Liabilities, Derivative Liabilities, and Collateral Pledged by Counterparty—As of December 31, 20X0
| Gross Amounts Not Offset in the Statement of Financial Position | ||||
| Net Amounts of Liabilities Presented in the Statement of Financial Position | Financial Instruments | Cash Collateral Pledged | Net Amount | |
| Counterparty A | $ – | $ – | $ – | $ – |
| Counterparty B | 80,000 | (80,000) | – | – |
| Other | – | – | – | – |
| Total | $80,000 | $(80,000) | $ – | $ – |
Example 3.5: Sophisticated Entity Disclosure by Type of Financial Instrument and Type of Counterparty
