Filed under: Financial instruments (FASB Project), Hedge accounting
KPMG’s in-depth guidance on and interpretation of the new hedging standard. KPMG explains the targeted changes to the hedging standard, provides examples and analysis, and compares to legacy US GAAP.
Mandatory effective dates and early adoption provisions:
For public business entities entities the effective date for annual periods is the fiscal years beginning after Dec. 15, 2018.
For all other entites the effective date for annual periods is the fiscal years beginning after Dec. 15, 2019.
For public business entities entities the effective date for interim periods is the fiscal years beginning after Dec. 15, 2018.
For all other entites the effective date for interim periods is the fiscal years beginning after Dec. 15, 2020.
Early adoption allowed?
Yes, any time after the issuance of the ASU including in an interim period.
The standard changes the recognition and presentation requirements of hedge accounting, including:
The standard also provides new alternatives for:
KPMG's Handbook providing comprehensive guidance on hedge accounting (post ASU 2017-12) Hedging