ASU 2021-01 — Reference Rate Reform (Topic 848): Scope

The amendments in this Update clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. Amendments in this Update to the expedients and exceptions in Topic 848 capture the incremental consequences of the scope clarification and tailor the existing guidance to derivative instruments affected by the discounting transition.

This Accounting Standards Update is the final version of Proposed Accounting Standards Update 2020-900—Reference Rate Reform (Topic 848): Scope Refinement, which has been deleted.

Issued: January 7, 2021