The Financial Accounting Standards Board is proposing guidance intended to ease the potential accounting burden companies expect to face as they navigate reference rate reform.
FASB has formally proposed an accounting standards update to provide temporary optional guidance for recognizing the effects of moving away from the London Interbank Offered Rate as a reference rate in various types of loans, derivatives, and other financial contracts. The guidance would provide relief by introducing new exceptions and practical expedients around the existing rules for contract modifications and hedge accounting.
