Update on New Hedge Accounting Rules under ASU 2017-12

The hedge accounting rules were materially simplified by the Financial Accounting Standards Board when they published ASU 2017-12 in August 2017.   Many companies have early-adopted these new rules before the mandatory effective date of 2019 to take advantage of the new provisions.  Given the significant changes promulgated last year, it is not surprising that several issues requiring additional FASB guidance have surfaced.  In the FASB’s September 5, 2018 meeting, several of these issues were clarified and some deferred for future clarification.

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