In August, the FASB issued significant amendments to its hedge accounting model. The new guidance can be adopted immediately in any interim or annual period (including the period in which it was issued). This publication summarizes the key changes by type of hedge (interest rate, commodity, and foreign currency), addresses the transition requirements and certain elections that can be made upon adoption, addresses SEC reporting considerations for 2017 early adopters, and highlights considerations related to changes in internal controls that may be necessary.
New hedge accounting guidance released to align hedge accounting with companies' risk management strategies, simplify the application of hedge accounting, and increase transparency.
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