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

    APRA Publishes Submission on Fintech and Regtech

    APRA published its submission, to the Senate Select Committee, on financial technology and regulatory technology.

    January 21, 2020 WebPage Regulatory News
    News

    ECB Consults on Guideline on Threshold for Credit Obligations Past Due

    ECB published a draft guideline, along with the frequently asked questions (FAQs), on the definition of the materiality threshold for credit obligations past due for less significant institutions.

    January 20, 2020 WebPage Regulatory News
    News

    BIS Discusses Role of Central Banks in Addressing Climate Change Risks

    BIS published a book that reviews ways of addressing the climate change risks within the financial stability mandate of central banks.

    January 19, 2020 WebPage Regulatory News
    News

    FSB Report Examines Global Nonbank Financial Intermediation Activity

    FSB published the ninth annual report examining the global non-bank financial intermediation activity.

    January 19, 2020 WebPage Regulatory News
    News

    OSFI Publishes Instruction Guide on Solvency Information Return

    OSFI published an instruction guide to assist administrators of pension plans in completing the Solvency Information Return that is required to be filed with OSFI.

    January 17, 2020 WebPage Regulatory News
    News

    EU Amends IFRS 9 Rule, Changes Concern Interest Rate Benchmark Reforms

    EU published Regulation 2020/34 regarding the International Accounting Standard (IAS) 39 and International Financial Reporting Standards (IFRS) 7 and 9.

    January 16, 2020 WebPage Regulatory News
    News

    FDIC and OCC Issue Statement on Heightened Cyber Security Risk

    In response to the heightened cyber-security risk facing the financial services industry and other critical business sectors, FDIC and OCC issued an interagency statement on heightened cyber-security risk.

    January 16, 2020 WebPage Regulatory News
    News

    BCRA Updates Regulation on Capital Requirements and Information Regime

    BCRA updated the rules on minimum capital requirements for financial entities and on certain aspects of the information transparency regime for quarterly and annual supervision.

    January 16, 2020 WebPage Regulatory News
    News

    BoE and FCA Outline Next Steps for LIBOR Transition in 2020

    BoE, FCA, and the Working Group on Sterling Risk-Free Reference Rates (RFRWG) have published a set of documents that outline the LIBOR transition priorities and milestones for 2020.

    January 16, 2020 WebPage Regulatory News
    News

    BIS to Expand Central Bank Membership

    BIS is to expand its central bank membership base and to increase collaboration in its work as a forum for international cooperation and as a hub for central banks and other financial authorities.

    January 14, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 4511