In September, the Financial Accounting Standards Board (FASB) issued a proposed Accounting Standards Update (ASU) on derivatives and hedging designed to improve the hedge accounting model by simplifying some existing strategies and expanding permitted strategies, and recognize the results of hedging strategies in financial statements more effectively.
In a Q&A discussion, FERF spoke with Crowe partner Chris Moore about the changes and their implications for hedge accounting and financial reporting.
Reflecting on the current state of accounting, Crowe highlights the implementation of major accounting standards for revenue, leases, and credit losses.
In addition to the hedge accounting proposal, the FASB released six other proposals during the quarter, as well as two final accounting standards on the following topics:
- Statement of Cash Flows (Topic 230)
- Not-for-Profit Financial Reporting (Topic 958)
Similarly, the U.S. Securities and Exchange Commission (SEC) issued a variety of proposals, including one to redefine smaller reporting companies, one to simplify disclosure requirements, and a staff announcement affecting implementation disclosures for the three recent major accounting standards.