On March 28, the Financial Accounting Standards Board (FASB) issued ASU 2022-01 to improve and expand fair value hedge accounting. Here’s what this update means for corporates and other organizations using the last-of-layer strategy.
In March, the FASB issued ASU 2020-04 on the “Facilitation of the Effects of Reference Rate Reform on Financial Reporting.”
As LIBOR is phased out, reference rate reform will identify new and alternative reference index rates for financial instruments, including the Secured Overnight Financing Rate (SOFR).
As a follow up to FASB’s June initiative to provide accounting relief to organizations that will need to modify their contracts as LIBOR is replaced by SOFR, FASB released a proposed Accounting Standards Update on Thursday.
In August 2017, the Financial Accounting Standards Board released ASU No. 2017-12, accounting guidance designed to better align a hedge program with an organization’s risk management objectives as reflected on financial statements. While the goal of these changes was to make hedging a more attractive option for corporations and financial institutions, stakeholders have brought up […]
Under new lease accounting rules, what was once a long-term operating lease off the balance sheet is now a monetary liability, while the offsetting lease asset is non-monetary.
With the LIBOR rate continuing to phase out, FASB announced last month that they have added the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) rate, as a benchmark interest rate to the list available for fair value hedging. The addition of the OIS rate based on SOFR brings the total number of benchmark […]
As seen in WG&L Accounting & Compliance Alert, Thomson Reuters/Tax & Accounting.
The biggest change that comes with the updates to ASC-815 is a new recognition that hedging is critical to many businesses where margins are at risk due to volatility. The FASB updates for ASC-815 aren’t required to be implemented until the new year beginning after December 15, 2018, but early adoption efforts are well underway and offer […]
The FASB recently released updated hedge accounting guidance which will improve the financial reporting to better portray the economic results of an entity’s hedge program in its financial statements.
In anticipation of the new hedging guidance, here are a few best practices for a solid foundation before implementing the updates.
The FASB continues to fine-tune its improvements to hedge accounting rules, which are due for final release later this quarter with early adoption available at the start of a company’s fiscal year. The general trend has been to relax the hedge accounting requirements so that those requirements are not a deterrent to the election of […]
In response to comment letters and FASB roundtables the FASB further relaxed effectiveness testing requirements in the proposed derivative accounting update, now permitting preparers to return to qualitative effectiveness testing after there have been changes in facts and circumstances that would require the entity to perform a quantitative effectiveness test. On February 15th, the FASB […]
On February 15th, the FASB discussed potential changes to the requirements for hedge documentation for private companies. During the January FASB meeting, the board looked at how the exposure draft changes to hedge accounting might impact private companies and decided to look specifically at the timing requirement for the production of hedge documentation, including the […]
The FASB reaffirmed many of the decisions made in the original exposure draft issued September 8, 2016. However, they will continue to discuss the following issues raised by constituents in the two meetings detailed below.