An Update on Hedge Accounting: A Q&A With Deloitte’s Jon Howard

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Apr 02, 2018

On April 2, 2018, Financial Executives International released a Q&A with Deloitte’s Jon Howard, where he discussed hedge accounting early adopters, foreign currency hedging, spot purchases, and more.

The new hedge accounting standard (ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities) takes effect for fiscal years beginning after December 15, 2018 for public companies and for fiscal years beginning after December 15, 2019 for private companies.

In the Q&A, Jon states that he's getting a lot of questions and doing a lot of consultations on foreign currency hedging. And that's basically any multi-national, anybody who's got operations overseas, whether it's purchases or sales, that they are going to do in another currency. What's really popular right now, is hedging subsidiaries, your net investment and subsidiaries in Europe, and Great Britain, and Japan.

He's also seeing a lot of foreign currency hedging right now. Not only entities that have been doing it and just want to apply the new standard, but entities that have not been doing it, wanting to adopt the new standard.

Review the full Q&A on FEI's website.

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