Defining Issues | March 2022
Amendments to establish the portfolio-layer method for hedges of financial assets in a closed portfolio.
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.
ASU 2022-01, Fair Value Hedging – Portfolio Layer Method
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:
Transition requirements:
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