Heads Up — FASB issues ASU to refine the scope of ASC 848 in response to reference rate reform

Published on: 11 Jan 2021

This Heads Up discusses the FASB’s recently issued Accounting Standards Update (ASU) No. 2021-01, Reference Rate Reform (Topic 848): Scope. The ASU permits entities to elect certain optional expedients and exceptions when accounting for derivative contracts and certain hedging relationships affected by changes in the interest rates used for discounting cash flows, for computing variation margin settlements, and for calculating price alignment interest in connection with reference rate reform activities under way in global financial markets.


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