Handbooks | December 2024
Latest edition: Our in-depth guide on derivatives and hedge accounting, with our latest interpretations.
Using Q&As and examples, we provide interpretive guidance on derivatives and hedging. This December 2024 edition includes updates to reflect the cessation of LIBOR, removal of effective dates and transition for ASU 2017-02, and new and updated interpretations based on questions we experience in practice.
ASC 815
When the first comprehensive guidance on derivatives and hedge accounting was issued in 1998, the accounting requirements in this area were widely acknowledged as the most detailed and complex in US GAAP.
We have seen ongoing changes made to those requirements. For nearly 20 years, the changes added to the rules and complexity. Since then, the changes have been focused on reducing operational burden, expanding the circumstances in which hedge accounting is permissible and better reflecting risk management practices.
Our objective with this publication is to help you navigate this complex area. We provide you with insights, examples and perspectives based on our years of experience – so you can understand the requirements and, when options are provided, decide which alternatives are right for you.
Derivatives and hedging
Download PDFFASB expands fair value hedge accounting
Amendments to establish the portfolio-layer method for hedges of financial assets in a closed portfolio.
FASB proposes changes to scope of derivative accounting
The proposed ASU expands a scope exception for derivatives and clarifies the interaction between ASC 815 and ASC 606.
FASB proposes changes to hedge accounting guidance
The proposed ASU is intended to improve alignment of hedge accounting guidance with risk management activities.
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