FASB published answers addressing the frequently asked questions about disruptive effects of the COVID-19 situation on cash flow hedge accounting. The published questions and answers (Q&A) address the application of guidance in Topic 815 on derivatives and hedging. The Q&A address stakeholder queries on how the postponement or cancellation of forecasted transactions related to the effects of the COVID-19 pandemic should be considered when applying cash flow hedge accounting in accordance with Topic 815.
Topic 815 provides guidance on when to discontinue cash flow hedge accounting and when and how to reclassify amounts deferred in accumulated other comprehensive income to earnings. FASB staff will continue to monitor questions and communicate with stakeholders through additional statements, technical inquiries, and other means, as appropriate. This Q&A document was developed to provide guidance on this unique and evolving situation, based on the information and feedback received to date.
Keywords: Americas, US, Banking, Accounting, COVID-19, Hedge Accounting, Topic 815, Derivatives and Hedging, Q&A, FAQ, FASB
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