Reference Rate Reform

ASC 848, Reference Rate Reform, provided temporary, wholly optional expedients and exceptions from otherwise applicable GAAP for contract modifications, hedging relationships, and other transactions affected by the discontinuation of LIBOR and other reference rates — most importantly allowing a rate-reform-driven modification to be accounted for as a continuation of the existing contract rather than an extinguishment or new contract, and permitting hedging relationships to continue without dedesignation. The topic is organized as an Overall subtopic (848-10) plus subtopics for contract modifications (848-20), hedging in general (848-30), fair value hedges (848-40), and cash flow hedges (848-50). As presented here, every paragraph in each subtopic has been superseded — by ASU 2020-04 and ASU 2021-01 (which clarified scope for derivatives affected by the discounting transition) — and the transition paragraphs 848-10-65-1 and 65-2 were superseded on 07/02/2026 at the end of the sunset period deferred by ASU 2022-06. The single most important takeaway is that Topic 848 relief was time-limited: after the sunset date the expedients expired, no conclusion can be supported by citing these superseded paragraphs, and entities must apply ordinary GAAP (e.g., Topics 815 and 470) to reference-rate-related changes.

Subtopics

1. 10Overall15 ¶

   ASC 848-10 was the "Overall" subtopic of Topic 848, Reference Rate Reform, which provided optional expedients and exceptions for contract modifications, hedge accounting, and other transactions affected by the discontinuation of LIBOR and other reference rates. As presented, every paragraph in this subtopic has been superseded — the substantive guidance in Sections 05 through 55 was superseded by ASU 2020-04 and ASU 2021-01, and the transition paragraphs (848-10-65-1 and 65-2) were superseded on 07/02/2026 at the end of the transition period set by ASU 2020-04, ASU 2021-01, and ASU 2022-06 (which deferred the sunset date). The practical result is that Topic 848 relief is time-limited and no longer available after the sunset date.

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2. 20Contract Modifications31 ¶

   ASC 848-20 was the placeholder subtopic for contract modifications under Reference Rate Reform, but every paragraph in it has been superseded — Sections 05, 15, 35, and 55 were all superseded by ASU 2020-04 (with 848-20-15-2A superseded by ASU 2021-01). As a result, 848-20 contains no operative guidance; the optional expedients for modifications of contracts affected by reference rate reform now reside in ASC 848-20's replacement guidance within Topic 848 (principally 848-10 scope and the successor modification/hedging subtopics). Students should treat this subtopic as an empty shell and look to the current Topic 848 guidance instead.

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3. 30Hedging—General20 ¶

   ASC 848-30 was the placeholder subtopic for general hedging guidance under the reference rate reform relief in Topic 848, but every paragraph in it has been superseded — the Section 05, 15, and 25 paragraphs by ASU 2020-04, and paragraphs 848-30-25-7A, 25-11A, 25-11B, and 25-11C by ASU 2021-01. As a result, the subtopic currently contains no operative recognition, scope, or overview guidance. Practitioners seeking the optional expedients and exceptions for hedge accounting relationships affected by the discontinuation of LIBOR and other reference rates must look to the other subtopics of Topic 848, principally 848-40 and 848-50.

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4. 40Fair Value Hedges12 ¶

   ASC 848-40 was the placeholder subtopic for fair value hedges within Topic 848, Reference Rate Reform. Every paragraph in its Overview (05), Scope (15), and Recognition (25) sections was superseded by ASU 2020-04, so the subtopic contains no operative guidance. Optional expedients and exceptions for fair value hedging relationships affected by reference rate reform reside instead in ASC 848-50 (Hedging — General) and the related hedging subtopics.

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5. 50Cash Flow Hedges42 ¶

   ASC 848-50 was the Reference Rate Reform subtopic addressing cash flow hedges, but every paragraph in it has been superseded (almost entirely by ASU 2020-04, with one paragraph superseded by ASU 2021-01). As codified today it contains no operative guidance; the optional expedients and exceptions for hedging relationships affected by reference rate reform reside in the surviving subtopics of Topic 848.

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