Expected issuance of anticipated new standard on hedge accounting
FINANCIAL REPORTING INSIGHTS |
On June 7, 2017, the Financial Accounting Standards Board (FASB) voted to proceed with the new accounting standard that is intended to improve and simplify hedge accounting. The final Accounting Standards Update is expected to be issued in August 2017.
While the new standard will not take effect until fiscal years beginning after December 15, 2018 for public companies and for fiscal years beginning after December 15, 2019 for private companies, the FASB decided to allow early adoption in any interim period or fiscal year. We anticipate many entities will want to take advantage of the early adoption provisions.
Tentative decisions reached to date as of June 20, 2017 are summarized on the FASB’s website.