An updated edition of A guide to hedge accounting is now available. The guide is intended to provide a high-level overview of hedge accounting based on the guidance in subtopics 815-20 through 815-35 within the Financial Accounting Standards Board’s (FASB) Accounting Standards Codification Topic 815, Derivatives and Hedging. The December 2023 edition has been updated to incorporate guidance from the following Accounting Standards Updates (ASUs) issued by the FASB:
- ASU 2021-01, Reference Rate Reform (Topic 848): Scope
- ASU 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging – Portfolio Layer Method
- ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848
The guide has also been updated to (a) incorporate the elimination of LIBOR after June 30, 2023 and the extension of the sunset date for application of Topic 848, (b) remove references to pre- and post-ASU 2017-12 due to the current applicability of the guidance and (c) eliminate Appendix A: High level overview of ASU 2017-12, as amended by ASU 2019-04.
