Featured Product

    FASB Issues Summary of Tentative Board Decisions at November Meeting

    November 13, 2019

    FASB published a summary of the tentative decisions taken at its Board meeting in November 2019. The Board discussed comments received on the proposed Accounting Standards Update on reference rate reform (Topic 848) regarding facilitation of the effects of reference rate reform on financial reporting. The key decisions taken at the meeting are related to hedge accounting relief, transition, and disclosures. The Board directed the staff to draft a final Accounting Standards Update for vote by written ballot.

    Hedge Accounting Relief—The Board affirmed its decisions to provide optional relief for the following:

    • Changes in critical terms for all hedging relationships and hedge effectiveness assessments of cash flow hedges
    • Changes to the designated hedged risk for fair value hedges subject to a revision that would require an entity to immediately recognize the change in the fair value hedge basis adjustment in earnings

    The Board affirmed its decision that an entity would apply the relief on a hedge-by-hedge basis. The Board decided to provide an additional optional relief for excluded components in hedge accounting relationships that are affected by reference rate reform. The Board decided to provide an additional optional relief to allow a one-time transfer of held-to-maturity securities that are affected by reference rate reform.

    Transition—The Board decided to provide certain hedge accounting relief for entities that have not adopted the amendments in Accounting Standards Update No. 2017-12 on derivatives and hedging (Topic 815). The Board affirmed its decision that an entity that elects to apply the relief guidance should apply that guidance on a prospective basis. The Board clarified that an entity can apply the guidance from the beginning of an interim period that includes the adoption date.

    Disclosures—The Board affirmed its decision to require entities to disclose the nature of, and reason for electing, the accounting relief in each interim financial statement of the fiscal year of change and in the annual financial statement of the period of change. The Board considered but rejected additional disclosure requirements related to an entity’s application of optional expedients in the guidance and to the exposure related to reference rate reform.

     

    Related Links

    Keywords: Americas, US, Banking, Accounting, Tentative Decisions, Accounting Standards Update, Reference Rate Reform, Derivatives and Hedging, Reporting, Topic 848, Topic 815, Hedge Accounting, Disclosure, FASB

    Featured Experts
    Related Articles
    News

    EBA Publishes Final Regulatory Standards on STS Securitizations

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.

    September 20, 2022 WebPage Regulatory News
    News

    ECB Further Reviews Costs and Benefits Associated with IReF

    The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.

    September 15, 2022 WebPage Regulatory News
    News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).

    September 15, 2022 WebPage Regulatory News
    News

    MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures

    The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.

    September 15, 2022 WebPage Regulatory News
    News

    BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules

    The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.

    September 15, 2022 WebPage Regulatory News
    News

    IOSCO Welcomes Work on Sustainability-Related Corporate Reporting

    The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)

    September 15, 2022 WebPage Regulatory News
    News

    BoE Allows One-Day Delay in Statistical Data Submissions by Banks

    The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.

    September 14, 2022 WebPage Regulatory News
    News

    ACPR Amends Reporting Module Timelines Under EBA Framework 3.2

    The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.

    September 14, 2022 WebPage Regulatory News
    News

    ECB Paper Discusses Disclosure of Climate Risks by Credit Agencies

    The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)

    September 13, 2022 WebPage Regulatory News
    News

    APRA to Modernize Prudential Architecture, Reduces Liquidity Facility

    The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.

    September 12, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8514