FASB's ongoing efforts to simplify hedge accounting
INSIGHT ARTICLE |
The Financial Accounting Standards Board (“the Board”) issued a proposed Accounting Standards Update titled Derivatives and Hedging (Topic 815), Targeted improvements to Accounting for Hedging Activities in September 2016, with a comment period that ended in November 2016. The Board met on January 25, 2017 to discuss the feedback they received on the proposed update and made various decisions that are outlined on the FASB’s website. Those provisions of the proposed update that received broad support were affirmed. Certain provisions that did not receive broad support were rescinded, and others are scheduled for redeliberations that are expected to be completed in February and March 2017. The effective date of the final standard is yet to be determined; however, the proposed update would permit early application as of the beginning of any fiscal year before the effective date.