Notes on FASB’s Recent ASU 2016-01
FASB has recently issued Accounting Standards Update 2016-01, “Financial Instruments – Overall (Subtopic 825-10).”
The fortunate upshot for most Hedge Trackers clients: There are no 815 changes to worry about.
In essence, ASU 2016-01 separates how debt securities and equity securities are handled under ASC 815. Debt securities are still accounted for by Subtopic 320; ASU 2016-01 makes clear that equity securities are now covered by Subtopic 321. If you don’t hold any equity securities, there’s little reason to pay much attention to ASU 2016-01 from a hedge accounting perspective. If you do, however, it’s definitely worth a read (available here).
Be sure to check your inbox and the Hedge Trackers Blog for more on ongoing changes to FASB guidance and regulations. If you have any questions about how they impact your hedge program, we’re happy to help; feel free to contact us.