Derivative vs. revenue: Key impacts of new FASB guidance

PwC's accounting podcast · Mar 31, 2026 · 26m · transcript

ASU 2025-07, Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract, is new FASB guidance that adds a derivative scope exception and clarifies the boundary between revenue and financial instruments guidance for share-based non-cash consideration from customers.

In this episode, we discuss:

2:39 – New derivative scope exception for contracts tied to operations

11:05 – Applying revenue versus financial instruments guidance

14:55 – Examples illustrating application of the share-based consideration guidance

22:59 –…