Proposed Accounting Standards Update · 2019
Proposed ASU 2019-790 — Derivatives and Hedging (Topic 815): Codification Improvements to Hedge Accounting
Affects815 Derivatives and Hedging
The amendments in this proposed Update would clarify certain amendments in Accounting Standards Update 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The proposed amendments would better align the amendments in Update 2017-12 with the objective articulated in that Update and eliminate the unintended application of certain amendments. Specifically, the amendments in the proposed Update address stakeholders' questions received since the issuance of Update 2017-12 on (a) a change in hedged risk in a cash flow hedge, (b) contractually specified components in cash flow hedges of nonfinancial forecasted transactions, (c) a foreign-currency-denominated debt instrument as a hedging instrument and hedged item, and (d) using the term prepayable under the shortcut method.
For more information, see the following:
Issued: November 12, 2019
Comments Due: January 13, 2020
The Exposure Draft identifies the Codification Sections that may be changed upon issuance of this guidance.
Text as published in the FASB Accounting Standards Codification, Basic View.