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  • U.S. Unlikely to Move to IFRS

    In an article published on August 10, 2015, FASB Chairman Russell Golden stated that “… it has become increasingly clear that the United States is unlikely to adopt IFRS.” While the FASB has not given up on the concept of global standards, there is little to no support from U.S. constituents, who are concerned about […]

  • Diversity in practice eliminated on Contingent Put and Call Options in Debt

    This exposure draft was issued August 6, 2015 to clarify the process for determining whether or not contingent put and call options must be bifurcated from their debt hosts. GAAP provides specific guidance for assessing whether these options that can accelerate the repayment of principal on a debt instrument meet the definition of clearly and […]

  • Don’t Let Derivative Accounting Hold You Back

    Derivative accounting – or “hedge accounting,” if you prefer – is hard. There are no two ways about it; accounting for derivative instruments and hedging activities is a highly specialized skillset possessed by only a small minority of accountants. While that may be the case, however, a lack of derivative accounting resources should not hold […]

  • Should Derivative Contract Novation Mean Hedge Accounting Dedesignation?

    A new exposure draft issued yesterday by the FASB clarifies that a novation of a derivative from one counterparty to another is NOT necessarily an automatic dedesignation. This is great news for Corporates that have been faced with counterparties withdrawing from the marketplace or monetizing their current positions. The FASB is asking several questions during the […]

  • When Should a Derivative Mature?

    One of the most common foreign exchange hedging questions we receive at Hedge Trackers deals with when derivatives should mature. While the full story is rather complex, the top-line answer is relatively simple. Essentially, derivative maturities should be tied to a cash flow event; a cash movement or a cash conversion. After all, protecting USD […]

  • EITF Reviews Call and Put Options on Debt Instruments

    Are puts and call options that can accelerate the repayment of principal in a debt instrument clearly and closely related or do they need to be bifurcated from the host debt instrument? In considering this question the EITF evaluated two alternatives.