Handbooks  |  September 2018

Handbook: Hedging

Filed under: Financial instruments (FASB project), Hedge accounting

KPMG’s guidance on and interpretation of ASC 815 hedge accounting. KPMG explains the qualifying criteria and models to apply hedge accounting in detail, providing Q&As and examples – updated for ASU 2017-12 and recent developments. 

Applicability

ASC 815 (ASU 2017-12)

  • Companies that apply hedge accounting

Relevant dates

Mandatory effective dates and early adoption provisions:

Effective date:

Annual periods – Fiscal years beginning after

Interim periods – In fiscal years beginning after

Early adoption allowed?

Public business entities

December 15, 2018

December 15, 2018

Yes, any time after the issuance of the ASU 2017-12 including in an interim period.

All other entities

December 15, 2019

December 15, 2020

Yes, any time after the issuance of the ASU 2017-12 including in an interim period.

Key impacts

  • Q&As that answer the questions we are encountering in practice
  • Examples to explain key concepts
  • Updated for ASU 2017-12 and recent developments 

Report contents

  • General hedging requirements
  • Qualifying criteria and accounting for fair value hedges
  • Qualifying criteria and accounting for cash flow hedges
  • Hedging foreign currency exposures
  • Net investment hedges
  • Hedge effectiveness
  • Hedge accounting for private companies
  • 2017-12 effective date and transition

Related content

Spotlight on contributors

Lindsey Freeman

Lindsey Freeman

Senior Manager, DPP, KPMG (US)

+1 212-954-3519
Mahesh Narayanasami

Mahesh Narayanasami

Principal, DPP, KPMG (US)

+1 212-954-7355
Mark Northan

Mark Northan

Partner, DPP, KPMG (US)

+1 212-954-6927

 

 

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