Heads Up — FASB Proposes Further Improvements to Hedge Accounting Guidance
Published on:
21 May 2021
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This Heads Up discusses the FASB’s recently issued proposed Accounting Standards Update (ASU), Fair Value Hedging — Portfolio Layer Method, which would clarify the guidance in ASC 815 on fair value hedge accounting of interest rate risk for portfolios of prepayable financial assets. The proposal would amend the guidance in ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities (released on August 28, 2017), which established a method for making such fair value hedge accounting more accessible and was issued in response to feedback and questions received from stakeholders. Comments on the proposed ASU are due by July 5, 2021.
