FASB staff Q&As address hedge accounting amid the pandemic
FASB’s staff addressed hedge accounting issues related to the coronavirus pandemic in a staff Q&A document posted to the board’s website Tuesday.
Stakeholders have asked FASB how the postponement or cancellation of forecasted transactions related to the effects of the pandemic should be considered when applying cash flow hedge accounting under FASB ASC Topic 815, Derivatives and Hedging.
The staff Q&As address those questions by answering:
FASB is monitoring other accounting issues related to the pandemic and plans to provide additional guidance as necessary. The FASB staff previously issued Q&As related to lease accounting amid the pandemic.
— Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is the JofA’s editorial director.
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