The Financial Accounting Standards Board issued an exposure draft of a proposed standard on accounting for hedging activities.
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The standard is intended to alleviate difficulties such as quantitatively assessing the effectiveness of hedging relationships, measuring ineffectiveness in a cash flow hedge, and measuring the change in value of a hedged item attributable to the risk in a fair value hedge. The proposed statement would establish a fair value approach to hedge accounting.
The amended hedging requirements would apply to fiscal years beginning after June 15, 2009, and interim periods within those fiscal years.
FASB is asking for comment on the proposed standard by August 15. For more information, visit