FASB is proposing an Accounting Standards Update (ASU) intended to reduce the accounting costs and complexities related to the movement away from interbank-offered interest rates.
Stakeholder comments on Reference Rate Reform (Topic 848): “Facilitation of the Effects of Reference Rate Reform on Financial Reporting” are due by Oct. 7. The guidance, the result of a FASB project launched late last year, would provide optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships affected by reference rate reform—the move of global capital markets away from interbank-offered rates.
The guidance would be temporary, as it would be intended for use only during the reference rate transition period. Read more about this ASU.