ASU 2022-01 establishes the portfolio-layer method, which expands an entity’s ability to achieve fair value hedge accounting for hedges of financial assets in a closed portfolio.
|Public business entitites||Other entities|
|Annual periods – Fiscal years beginning after||December 15, 2022||December 15, 2023|
|Interim periods – In year of adoption||Yes||Yes|
|Early adoption permitted?||Yes. Early adoption is permitted on any date on or after the issuance of ASU 2022-01 for any entity that has adopted ASU 2017-12.|
The ASU includes the following key provisions: