A currency forward is a customizable derivative product and a common hedging tool that is used in the forex market. The purpose of this article is to provide an overview regarding the accounting for and presentation of contract assets and contract liabilities.Introduction to derivatives and how they are accounted for. Forward rate agreements are over-the-counter contracts between parties that determine the rate of interest to be paid on an agreed-upon date in the future. USA Corp would record the following entries when the forecasted sales occur and forward contract matures on March 31, 20X2. Dr. Forward contract receivable. This guide is intended to provide a highlevel overview of hedge accounting and is based on the content within ASC 81520 to ASC 81535. Schedule RC-L should be completed on a fully consolidated basis.