Handbooks | May 2022

 

Insight

Handbook: Reference rate reform

In-depth guidance on ASC 848’s optional relief for affected contracts and transactions.

Mark Northan

Mark Northan

Partner, Dept. of Professional Practice, KPMG US

+1 212-954-6927

Lisa Blackburn

Lisa Blackburn

Executive Director, Dept. of Professional Practice, KPMG US


Our in-depth guide explains the optional expedients in ASC 848 that permit an entity to not apply otherwise applicable US GAAP to contracts or transactions that are modified or otherwise affected due to reference rate reform

Applicability

  • ASC 848

All companies with contracts or hedging relationships that reference an interest rate that is expected to be discontinued (e.g. LIBOR)

Report contents

  • Scope of Topic 848 
  • Contract modifications
  • Hedging relationships: Changes to critical terms 
  • Fair value hedges 
  • Cash flow hedges 
  • Sale and/or transfer of HTM debt securities 
  • Effective date, transition and termination

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