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The Financial Accounting Standards Board (FASB) recently voted to proceed to a final standard on hedge accounting, part of the financial instruments project that FASB had been working on for years with the International Accounting Standards Board before the two boards went their separate ways.
FASB anticipates issuing the final hedging standard in August. The new standard aims to present the economic results for hedge accounting in a more transparent way, on the face of the financial statements as well as in the footnotes, for investors and analysts. Hedge accounting would be expanded for both financial risks (such as interest rates) and commodity risks.
The new standard will take effect for fiscal years, and interim periods within those fiscal years, starting after Dec. 15, 2018, for public companies and for fiscal years beginning after Dec. 15, 2019 (and interim periods for fiscal years beginning after Dec. 15, 2020), for private companies. FASB is allowing early adoption in any interim period or fiscal years before the effective date.
Read the story in Accounting Today here.