The Derivatives and hedging guide provides guidance on the accounting for derivatives and hedges for financial and nonfinancial assets and liabilities.
This guide was partially updated in July 2020.
Our Derivatives and hedging guide focuses on the accounting and financial reporting considerations for derivative instruments and hedging activities. It addresses the definition of a derivative and how to identify one on its own or when embedded in another contract. It also provides information on accounting for hedges of financial, nonfinancial, and foreign currency risks, and how to assess effectiveness. Finally, it addresses the presentation and disclosure requirements and the transition provisions for the FASB’s hedge accounting standard.
The FASB’s new guidance on hedging is effective this year. In this episode, PwC partners Heather Horn and Brian Staniszewski discuss five things you need to know when implementing the new hedging standard.
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