Notes on ASU 2016-03 & New FASB Guidance
We have two updates to share from FASB this week – notes on Accounting Standards Update (ASU) 2016-03 and the highly anticipated new hedge accounting guidelines.
ASU 2016-03 applies only to entities that qualify for private company (PCC) accounting. It makes the upcoming transition to PCC hedge accounting available immediately, and doesn’t penalize companies that miss the original transition period.
We are all eagerly anticipating changes to the hedge accounting standards. They’re on their way; FASB is now targeting late June to publish the exposure draft. (The original target was December 2015.) The Board is studying transition alternatives proposed by the staff: the final open issue.
Stay tuned to the Hedge Trackers Blog for more updates on FASB standards and guidance.