Some companies wanting to take full advantage of simpler accounting rules on hedging are pausing to ask a few questions, and even rulemakers are taking a fresh look to see if they need to clarify things.
In August, the Financial Accounting Standards Board issued Accounting Standards Update No. 2017-12 to give companies some long-sought simplifications on how to account for derivative instruments that are part of a company’s hedge strategy. The board considered a number of different approaches over several years to improve hedge accounting before settling on the “targeted improvements” standard that takes effect in 2019, with early adoption permitted.
