ASU 2014-03 — Derivatives and Hedging (Topic 815)

The objective of the amendments in this Update is to address the concerns of private company stakeholders by providing an additional hedge accounting alternative within Topic 815 for certain types of swaps that are entered into by a private company for the purpose of economically converting variable-rate interest payments into fixed-rate payments. This additional hedge accounting alternative, the simplified hedge accounting approach, acts as a practical expedient to qualify for cash flow hedge accounting under Topic 815 if certain conditions are met.

This Accounting Standards Update is the final version of Proposed Accounting Standards Update PCC-13-03—Derivatives and Hedging (Topic 815), which has been deleted.

Issued: January 16, 2014