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FASB proposes guidance related to effects of reference rate reform

  • FASB document Image

Sep 05, 2019

The FASB has issued a proposed Accounting Standards Update (ASU), “Facilitation of the Effects of Reference Rate Reform on Financial Reporting.”

The proposed ASU would provide temporary, optional expedients and exceptions related to applying U.S. GAAP to contract modifications, hedging relationships, fair value hedges, and other transactions affected by reference rate reform. The purpose of the proposal is to “ease the potential burden in accounting for, or recognizing the effects of, reference rate reform on financial reporting.” However, the proposed amendments would “apply only to contracts or hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform.”

Comments on the proposed ASU are due by October 7, 2019. For more information, see the press release and FASB in Focus newsletter on the FASB’s Web site.

On September 16, 2019, the FASB issued for comment Proposed Taxonomy Improvements for Proposed Accounting Standards Update—Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. Comments on the proposed taxonomy improvements are due by October 7, 2019.

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