Appendix D — Roadmap Updates for 2024
The table below summarizes the
substantive changes made in the 2024 edition of this Roadmap.
Section
|
Title
|
Description
|
---|---|---|
Modified On
the Horizon to include recent FASB
activity related to its September 2024 proposed ASU that
makes targeted improvements to hedge accounting.
| ||
Objective of Hedge Accounting
|
Added reference to Deloitte’s Roadmap Derivatives.
| |
History of Hedge Accounting Guidance
| Modified Changing Lanes discussion to include recent FASB activity related to its project on targeted improvements to hedge accounting. | |
Interest Rate Risk
|
Added discussion of reference rate reform and the
replacement of LIBOR with SOFR.
| |
Contractually Specified Component of Existing
Contract
|
Modified Changing Lanes discussion to include
recent FASB activity related to its project on
Codification improvements to hedge accounting.
| |
Contractually Specified Component of a Contract That Does
Not Yet Exist
|
Modified Changing Lanes discussion to include
recent FASB activity related to its project on targeted
improvements to hedge accounting.
| |
The Written Option Test
|
Modified Changing
Lanes discussion to note that the FASB’s
September 2024 proposed ASU includes guidance on
applying the net written option test when the designated
hedging instrument in a cash flow hedge is a compound
derivative made up of a written option and a nonoption
derivative.
| |
Interest Rate Risk Hedging
|
Expanded discussion of determining the
benchmark component of contractual coupons.
| |
Date or Range of Dates
|
Modified Changing
Lanes discussion to include recent FASB
activity related to its project on targeted improvements
to hedge accounting.
| |
Choose-Your-Rate Debt
|
Added Changing Lanes discussion of
recent FASB activity related to its project on targeted
improvements to hedge accounting.
| |
Illustrative Examples
|
Added Example 4-18A
to demonstrate the accounting for an off-market interest
rate swap hedging variable-rate debt.
| |
Hedging Instrument Is a Nonderivative Instrument
|
Modified Changing
Lanes discussion to include recent FASB
activity related to its project on targeted improvements
to hedge accounting.
|