The Financial Accounting Standards Board has issued the final proposal in its three-pronged effort to address bank accounting that started in 2010. Having issued new standards this year on classification and measurement and loan impairment, FASB issued its exposure draft to improve and expand the use of hedge accounting.
Based on initial ABA staff analysis, the proposal represents targeted improvement in how cash flow hedges are reported, alleviates some of the documentation requirements, and expands the benchmark indexes that are available for hedge accounting. ABA staff will continue to review the exposure draft.
Read the exposure draft.