Heads Up — FASB clarifies hedge accounting guidance

Published on: 29 Mar 2022

This Heads Up discusses the FASB’s newly issued Accounting Standards Update (ASU) No. 2022-01, Fair Value Hedging — Portfolio Layer Method. The ASU clarifies the guidance in ASC 815 on fair value hedge accounting of interest rate risk for portfolios of financial assets. ASU 2022-01 amends the guidance in ASU 2017-12 that, among other things, established the “last-of-layer” method for making the fair value hedge accounting for these portfolios more accessible. ASU 2022-01  renames that method the “portfolio layer” method.


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