The Financial Accounting Standards Board posted a
When FASB issued an invitation to comment on its future agenda last year and did other outreach, its stakeholders cited three separate issues that could be addressed through limited, targeted amendments to the guidance to better reflect the economics of their risk management activities.
The proposed update would:
- Allow an entity to hedge interest rate risk for held to maturity debt securities;
- Amend the current U.S. GAAP definition of the secured overnight financing rate overnight index swap rate to permit designation of any tenor of SOFR; and
- Expand the population of eligible net investment hedging instruments by permitting the use of certain float-to-float cross currency swaps with different reset dates.
The amendments in the proposed accounting standards update would apply to any entity that elects to apply hedge accounting guidance. FASB is asking for comments on the
In April,
