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Recent and upcoming accounting standards updates (ASU)

Accounting Standards Updates (PBE) (Public)

Effective in 2023

ASU

Topic No.

Beginning / Ending

Date for Public Business Entities

Summary Description (As per the FASB Summary)

Update 2022-05 - Financial Services—Insurance (Topic 944): Transition for Sold Contracts

ASC 944

Beginning After

12/15/2022

This ASU amends the LDTI transition guidance to allow an insurance entity to make an accounting policy election on a transaction-bytransaction basis. An insurance entity may elect to exclude contracts that meet certain criteria from applying the amendments in Update 2018-12. To qualify for the accounting policy election, as of the LDTI effective date both of the following conditions must be met:
1. The insurance contracts must have been derecognized because of a sale or disposal of individual or a group of contracts or legal entities.
2. The entity has no significant continuing involvement with the derecognized contracts.

Update 2022-04 - Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations

ASC 405

Beginning After

12/15/2022

The amendments in this ASU require that a buyer in a supplier finance program disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. To achieve that objective, the buyer should disclose qualitative and quantitative information about its supplier finance programs. See ASU 2022-04 for more information.

Update 2022-02—Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures

ASC 326

Beginning After

12/15/2022

This ASU eliminates the accounting guidance for TDRs by creditors in Subtopic 310-40, Receivables—Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements. This ASU also requires that an entity disclose current-period gross writeoffs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost.

Update 2022-01—Derivatives and Hedging (Topic 815): Fair Value Hedging—Portfolio Layer Method

ASC 815

Beginning After

12/15/2022

"This ASU applies to all entities that elect to apply the portfolio layer method of hedge accounting in accordance with Topic 815.

Update 2021-08 - Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers

ASC 805

Beginning After

12/15/2022

This ASU states that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. An acquirer should account for the related revenue contracts with Topic 606 as if it had originated the contracts

Update 2018-12 - Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts

ASC 944

Beginning After

12/15/2022

This ASU affects aspects of the guidance in Topic 944 related to assumptions used to measure the liability for future policy benefits for traditional and limited-payment contracts; measurement of market risk benefits; amortization of deferred acquisition costs; and diclosures.

 

Accounting Standards Updates (PBE) (Public)

Effective in 2022

ASU

Topic No.

Beginning / Ending

Date for Public Business Entities

Summary Description (As per the FASB Summary)

Update 2021-10—Government Assistance (Topic 832)

ASC 832

Beginning After

12/15/2021

The amendments in this ASU require disclosures for transactions with a government that is accounted for by applying grant or contribution accounting models (i.e., IAS 20, Accounting for Government Grants and Disclosure of Government Assistance, or Subtopic 958-605, Not-For-Profit Entities—Revenue Recognition).

Update 2021-05—Leases (Topic 842): Lessors—Certain Leases with Variable Lease Payments

ASC 842

Beginning After

12/15/2021

Lessors should classify and account for a lease with variable lease payments that do not depend on a reference index or a rate as an operating lease if both of the following criteria are met:
1. The lease would have been classified as a sales-type lease or a direct financing lease in accordance with the classification criteria in paragraphs 842-10-25-2 through 25-3
2. The lessor would have otherwise recognized a day-one loss

Update 2021-04 - Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options (a consensus of the FASB Emerging Issues Task Force)

ASC 470/ASC 260/ASC 718/ASC 815

Beginning After

12/15/2021

This ASU requires the issuer to treat a modification of an equity-classified written call option that does not cause the instrument to become liability-classified as an exchange of the original instrument for a new instrument.

Update 2020-07 - Not-for-Profit Entities (Topic 958): Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets

ASC 958

Beginning After

6/15/2021

This ASU applies to NFPs that receive contributed nonfinancial assets. Contribution revenue may be presented in the financial statements using different terms (for example, gifts, donations, grants, gifts-in-kind, donated services, or other terms). The amendments address presentation and disclosure of contributed nonfinancial assets.

Update 2020-06 - Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity

ASC 470
ASC 815

Beginning After

12/15/2021

This ASU affects entities that issue convertible instruments and/or contracts in an entity’s own equity. For convertible instruments, the instruments primarily affected are those issued with beneficial conversion features or cash conversion features because the accounting models for those specific features are removed. However, all entities that issue convertible instruments are affected by the amendments to the disclosure requirements in this Update.

 

Accounting Standards Updates (PBE) (Public)

Effective in 2021

ASU

Topic No.

Beginning / Ending

Date for Public Business Entities

Summary Description (As per the FASB Summary)

Update 2021-06—Presentation of Financial Statements (Topic 205), Financial Services—Depository and Lending (Topic 942), and Financial Services—Investment Companies (Topic 946): Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses, and No. 33-10835, Update of Statistical Disclosures for Bank and Savings and Loan Registrants (SEC Update)

ASC 942

n/a

Upon issuance (August 2021)

This ASU amends certain SEC paragraphs from the Codification in response to the issuance of SEC Final Rule Nos. 33-10786, Amendments to Financial Disclosures About Acquired and Disposed Businesses, and 33-10835, Update of Statistical Disclosures for Bank and Savings and Loan Registrants.

Update 2021-01 - Reference Rate Reform

ASC 848

As of

3/12/20 - 12/31/22

The amendments in this ASU clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition.

Update 2020-10 - Codification Improvements

Various

Beginning After

12/15/2020

This ASU includes an amendment that improves consistency for all disclosure guidance and inclusion in the appropriate disclosure sections. It also amends and adds new headings, cross referencing to other guidance, and refining or correcting terminology.

Update 2020-09 - Debt (Topic 470): Amendments to SEC Paragraphs Pursuant to SEC Release No. 33-10762

ASC 470

Beginning After

1/4/2021

This ASU amends and supersedes various SEC paragraphs pursuant to the issuance of SEC Release No. 33-10762.

Update 2020-08 - Codification Improvements to Subtopic 310-20, Receivables—Nonrefundable Fees and Other Costs

ASC 310

Beginning After

12/15/2020

This ASU clarifies that an entity should reevaluate whether a callable debt security is within the scope of paragraph 310-20-35-33 for each reporting period.

Update 2020-04 - Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting

ASC 848

As of

3/12/20 - 12/31/22

This ASU provides optional expedients and exceptions for applying generally accepted accounting principles (GAAP) to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. It does not apply to contract modifications made, and hedging relationships entered into or evaluated, after Dec. 31, 2022, except for hedging relationships existing as of Dec. 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship.

Update 2020-02 - Financial Instruments—Credit Losses (Topic 326) and Leases (Topic 842)—Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842) (SEC Update)

ASC 326
ASC 842

Beginning After

12/15/2020

This ASU amends guidance based on SEC Staff Accounting Bulletin Number 119 and provides guidance related to measuring credit losses.

Update 2020-01 - Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815)—Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 (a consensus of the FASB Emerging Issues Task Force)

ASC 321
ASC 323
ASC 815

Beginning After

12/15/2020

This ASU clarifies that entities that apply the measurement alternative in ASC 321 should consider observable transactions that result in entities initially applying or discontinuing the use of the equity method of accounting under ASC 323. The guidance also clarifies that certain forward contracts and purchased options on equity securities are in the scope of ASC 321.

Update 2019-12 - Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes

ASC 740

Beginning After

12/15/2020

This ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740.

 

Accounting Standards Updates (non-PBE) (Private)

Effective in 2023

ASU

Topic No.

Beginning / Ending

Date for Non-Public Business Entities

Summary Description (As per the FASB Summary)

Update 2022-04 - Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations

ASC 405

Beginning After

12/15/2022

This ASU requires that a buyer in a supplier finance program disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. To achieve that objective, the buyer should disclose qualitative and quantitative information about its supplier finance programs.

Update 2022-02 - Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures

ASC 326

Beginning After

12/15/2022

For entities that have adopted the amendments in Update 2016-13, the amendments in this Update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. For entities that have not yet adopted the amendments in Update 2016-13, the effective dates for the amendments in this Update are the same as the effective dates in Update 2016-13. The amendments in this Update that are related to TDRs affect all entities after they have adopted Update 2016-13. The amendments related to vintage disclosures affect public business entities with investments in financing receivables that have adopted Update 2016-13.

Update 2020-03 - Codification Improvements to Financial Instruments

ASC 326
ASC 842
ASC 860

Beginning After

12/15/2022

This ASU clarifies that the contractual term of a net investment in a lease determined in accordance with Topic 842 should be the contractual term used to measure expected credit losses under Topic 326 and that clarify that when an entity regains control of financial assets sold, an allowance for credit losses should be recorded in accordance with Topic 326.

Update 2019-11 - Codification Improvements to Topic 326, Financial Instruments—Credit Losses

ASC 326

Beginning After

12/15/2022

 

Update 2019-05 - Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief

ASC 326

Beginning After

12/15/2022

This ASU provides entities having certain instruments within the scope of ASC 326-20 (Financial Instruments—Credit Losses—Measured at Amortized Cost) with an option to irrevocably elect the fair value option in ASC 825-10, applied on an instrument-by-instrument basis for eligible instruments, upon adoption of Topic 326. The fair value option election does not apply to held-to-maturity debt securities. An entity that elects the fair value option should subsequently apply the guidance in ASC 820-10 and ASC 825-10.

Update 2019-04 - Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments

ASC 326
ASC 815
ASC 825

Beginning After

12/15/2022

This ASU includes codification improvements.

Update 2018-19 - Codification Improvements to Topic 326, Financial Instruments—Credit Losses

ASC 326

Beginning After

12/15/2022

This ASU provides nonpublic business entities additional time to implement the new credit losses standard (ASU 2016-13). In addition, this update clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20.

Update 2017-04 - Intangibles - Goodwill and Other

ASC 350

Beginning After

12/15/2022

This ASU eliminates Step 2 of the quantitative goodwill impairment test.

Update 2016-13 - Financial Instruments-Credit Losses

ASC 326

Beginning After

12/15/2022

This ASU Introduces an expected losses approach to estimating credit losses. It also significantly modifies the impairment model for AFS debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination.

 

Accounting Standards Updates (non-PBE) (Private)

Effective in 2022

ASU

Topic No.

Beginning / Ending

Date for Non-Public Business Entities

Summary Description (As per the FASB Summary)

Update 2021-10—Government Assistance (Topic 832)

ASC 832

Beginning After

12/15/2021

The amendments in the ASU require disclosures for transactions with a government that is accounted for by applying grant or contribution accounting model (i.e., IAS 20, Accounting for Government Grants and Disclosure of Government Assistance, or Subtopic 958-605, Not-For-Profit Entities—Revenue Recognition).

Update 2021-09—Leases (Topic 842): Discount Rate for Lessees That Are Not Public Business Entities

ASC 842

Beginning After

12/15/2021

This ASU provides a lessee that is not a public business entity more flexibility when making the accounting policy election to use an appropriate risk-free rate by allowing such election to be made by class of underlying asset. Prior to the amendments in this ASU, a lessee’s election to use a risk-free rate for lease classification and measurement was required to be applied to all leases.

Update 2021-07—Compensation—Stock Compensation (Topic 718): Determining the Current Price of an Underlying Share for Equity-Classified Share-Based Awards (a consensus of the Private Company Council)

ASC 718

Beginning After

12/15/2021

This ASU allows for a practical expedient for a nonpublic entity to determine the current price of equity-classified share-based awards by using the “reasonable application of a reasonable valuation method”.

Update 2021-05—Leases (Topic 842): Lessors—Certain Leases with Variable Lease Payments

ASC 842

Beginning After

12/15/2021

Lessors should classify and account for a lease with variable lease payments that do not depend on a reference index or a rate as an operating lease if both of the following criteria are met:
1. The lease would have been classified as a sales-type lease or a direct financing lease in accordance with the classification criteria in paragraphs 842-10-25-2 through 25-3.
2. The lessor would have otherwise recognized a day-one loss.

Update 2021-04 - Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options (a consensus of the FASB Emerging Issues Task Force)

ASC 470/ASC 260/ASC 718/ASC 815

Beginning After

12/15/2021

This ASU requires the issuer to treat a modification of an equity-classified written call option that does not cause the instrument to become liability-classified as an exchange of the original instrument for a new instrument.

Update 2020-10 - Codification Improvements

Various

Beginning After

12/15/2021

This ASU includes an amendment that improves consistency for all disclosure guidance and inclusion in the appropriate disclosure sections. It also amends and adds new headings, cross referencing to other guidance, and refining or correcting terminology.

Update 2020-08 - Codification Improvements to Subtopic 310-20, Receivables—Nonrefundable Fees and Other Costs

ASC 310

Beginning After

12/15/2021

This ASU clarifies that an entity should reevaluate whether a callable debt security is within the scope of paragraph 310-20-35-33 for each reporting period.

Update 2020-07 - Not-for-Profit Entities (Topic 958): Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets

ASC 958

Beginning After

6/15/2021

This ASU applies to NFPs that receive contributed nonfinancial assets. Contribution revenue may be presented in the financial statements using different terms (for example, gifts, donations, grants, gifts-in-kind, donated services, or other terms). The amendments address presentation and disclosure of contributed nonfinancial assets.

Update 2020-01 - Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815)—Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 (a consensus of the FASB Emerging Issues Task Force)

ASC 321
ASC 323
ASC 815

Beginning After

12/15/2021

This ASU clarifies that entities that apply the measurement alternative in ASC 321 should consider observable transactions that result in entities initially applying or discontinuing the use of the equity method of accounting under ASC 323. The guidance also clarifies that, certain forward contracts and purchased options on equity securities are in the scope of ASC 321.

Update 2019-12 - Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes

ASC 740

Beginning After

12/15/2021

This ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740.

Update 2019-01 - Leases (Topic 842): Codification Improvements

ASC 842

Beginning After

Issues 1 & 2: 12/15/2021 /Issue 3: Upon Adoption

This ASU addresses three issues:
Issue 1: Determining the Fair Value of the underlying Asset by Lessors That Are Not Manufacturers or Dealers
Issue 2: Presentation on the Statement of Cash Flows – Sales-Type and Direct Financing Leases
Issue 3: Transition Disclosures Related to Topic 250, Accounting Changes, and Error Corrections

Update 2018-20 - Leases: Narrow-Scope Improvements for Lessors

ASC 842

Beginning After

12/15/2021

Scope improvement for lessors involving:
- Sales taxes and other similar taxes collected from lessee
- Certain lessor costs
- Recognition of variable payments for contracts with lease and non-lease components
See ASU for complete list of changes.

Update 2018-11 - Leases (Topic 842): Targeted Improvements, Leases

ASC 842

Beginning After

12/15/2021

This ASU amends Topic 842 by (1) adding an additional transition method that allows reporting entities to transition to Topic 842 as of the beginning of the period in which it is adopted but does not change the requirement for all reporting entities to adopt on a modified retrospective basis; and (2) adding a practical expedient that, if elected, allows lessors to combine non-lease components that meet certain criteria with their associated lease components that qualify for operating lease classification.

Update 2018-10 - Codification Improvements to Topic 842, Leases

ASC 842

Beginning After

12/15/2021

This ASU amends Topic 842 by making certain corrections and clarifications that refine Topic 842 but do not change its meaning or intent.

Update 2018-01 - Land Easement Practical Expedient

ASC 842

Beginning After

12/15/2021

Upon adopting Topic 842, a reporting entity must apply Topic 842 prospectively to all new or modified land easements to determine whether it should be accounted for as a lease. However, there is also an optional transition practical expedient to not evaluate land easements under Topic 842 if certain criteria are met.

Land easements that meet the definition of a lease under Topic 842 will not qualify for the accounting treatment described in Example 10 of Subtopic 350-30(paragraphs 350-30-55-29 through 55-32).

Update 2016-02 - Leases

ASC 842

Beginning After

12/15/2021

This ASU changed the accounting for leases in several ways. The most significant change is most operating leases will be brought on to lessee balance sheets, requiring lessees to recognize liabilities reflecting the discounted amount of lease payments payable over the lease term. See our Lease Accounting Resource Center for more information.

 

Accounting Standards Updates (non-PBE) (Private)

Effective in 2021

ASU

Topic No.

Beginning / Ending

Date for Non-Public Business Entities

Summary Description (As per the FASB Summary)

Update 2021-03 - Intangibles—Goodwill and Other (Topic 350): Accounting Alternative for Evaluating Triggering Events

ASC 350

Beginning After

12/15/19 (on a prospective basis)

The amendments in this Update provide private companies and not-for-profit entities with an accounting alternative to perform the goodwill impairment triggering event evaluation as required in Subtopic 350-20 as of the end of the reporting period, whether the reporting period is an interim or annual period.
Early adoption is permitted for both interim and annual financial statements that have not yet been issued or made available for issuance as of March 30, 2021

Update 2021-01 - Reference Rate Reform

ASC 848

As of

3/12/20 - 12/31/22

The amendments in this ASU clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition.

Update 2020-04 - Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting

ASC 848

As of

3/12/20 - 12/31/22

This ASU provides an optional expedients and exceptions for applying generally accepted accounting principles (GAAP) to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after Dec. 31, 2022, except for hedging relationships existing as of Dec. 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship.

Update 2019-02 - Entertainment—Films—Other Assets—Film Costs (Subtopic 926-20) and Entertainment—Broadcasters—Intangibles—Goodwill and Other (Subtopic 920-350): Improvements to Accounting for Costs of Films and License Agreements for Program Materials (a consensus of the Emerging Issues Task Force)

ASC 926-20
ASC 920-350

Beginning After

12/15/2020

The amendments in this update align the accounting for production costs of an episodic television series with the accounting for production costs of films by removing the content distinction for capitalization. Review the ASU for more information.

Update 2018-18 - Clarifying the Interaction between Topic 808 and Topic 606

ASC 808

Beginning After

12/15/2020

This ASU provides guidance clarifying that certain transactions between collaborative arrangement participants should be accounted for as revenue under Topic 606 when the collaborative arrangement participant is a customer (as determined under Topic 606).
See Topic 808 for additional information, and ASC 808-10-65-2 regarding transition.

Update 2018-17 - Targeted Improvements to Related Party Guidance for Variable Interest Entities

ASC 810

Beginning After

12/15/2020

Entities Under Common Control: Effectively expands the private company alternative allowing private company reporting entities to elect not to apply the VIE guidance to qualifying common control leasing arrangements to all common control arrangements that meet specific criteria. The alternative cannot be applied selectively to common control arrangements that meet the criteria for applying this accounting alternative.

Decision Maker Fees: Indirect interests held through related parties in common control arrangements should be considered on a proportional basis for determining whether fees paid to decision makers and service providers are variable interests.

The amendments in this must be applied retrospectively with a cumulative-effect adjustment to retained earnings as of the beginning of the earliest period presented.

Update 2018-16 - Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes

ASC 815

Beginning After

12/15/2019 (If adopted ASU 2017-12) / 12/15/2020 (If not adopted ASU 2017-12)

The Overnight Index Swap (OIS) Rate based on the Secured Overnight Financing Rate (SOFR) is included as an eligible benchmark interest rate under Topic 815 for hedge accounting purposes. The amendments in this update should be on a prospective basis for qualifying new or redesignated hedging relationships entered into on or after the date of adoption.

Update 2018-15 - Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract

ASC 350-40

Beginning After

12/15/2020

This update aligns certain costs with the treatment described in ASU 2015-05 (Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement) to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement (hosting arrangement) by providing guidance for determining when the arrangement includes a software license.

Update 2018-14 - Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans

ASC 715-20

Ending After

12/15/2021

The amendments in this Update modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. Some disclosure requirements have been removed and some disclosure requirements have been added to Subtopic 715-20.

The amendments in this Update also clarify the disclosure requirements in paragraph 715-20-50-3, which state that certain information for defined benefit pension plans should be disclosed.

Update 2017-12 - Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities

ASC 815

Beginning After

12/15/2020

This ASU reduces complexity with respect to hedge documentation and hedge effectiveness assessments. The amendments in this ASU eliminate the requirement to separately measure and report hedge ineffectiveness; expands the types of permissible cash flow hedging strategies (i.e. certain contractually specified components); and adds the Securities Industry and Financial Markets Association ("SIFMA") municipal swap rate as a permitted U.S. benchmark interest rate.

Matthew Derba, CPA, Partner, National Director of Accounting

646.601.7828

Monica Peborde, CPA, Senior Manager

646.254.7422

Related Services

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