Appendix D — Roadmap Updates for 2025 | DART – Deloitte Accounting Research Tool

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Appendix D — Roadmap Updates for 2025

The table below summarizes the substantive changes made in the 2025 edition of this Roadmap.

Section	Title	Description
On the Radar		Modified On the Horizon to include recent FASB activity related to its September 2024 proposed ASU that makes targeted improvements to hedge accounting.
1.2	History of Hedge Accounting Guidance	Modified Changing Lanes to include recent FASB activity related to its project on targeted improvements to hedge accounting.
2.2.1.1	Items That Are Already Remeasured at Fair Value, With Changes in Fair Value Recognized in Earnings	Added (1) Connecting the Dots to clarify that items that are (or will be) measured at the lower of cost or market can be designated as the hedged item in a fair value or cash flow hedge and (2) Changing Lanes to discuss recent FASB activity related to its project on targeted improvements to hedge accounting.
2.2.2.2.2	Hedging Portfolios — Cash Flow Hedging	Modified Changing Lanes to include recent FASB activity related to its project on targeted improvements to hedge accounting.
2.4.1.3.2.1	Definition of Written Option	Moved Changing Lanes discussion of the written option test to this section from Section 2.4.1.3.2.4 and added discussion of recent FASB activity related to its project on targeted improvements to hedge accounting.
2.5.2.1.2.5	Hedged Item — Net Investment Hedge	Added Connecting the Dots to discuss intentional overhedging or underhedging of a net investment hedge.
2.5.2.1.4	Off-Market Derivatives	Expanded Connecting the Dots to discuss cash flow considerations related to blend and extend strategies with an other-than-insignificant financing element at inception.
3.2.1.2.1	Contingent Prepayment Terms	Removed Changing Lanes and discussion of the term “prepayable.”
3.2.1.4	Portfolio Layer Method	Updated section title and replaced the last-of-layer method guidance with the portfolio layer method guidance since ASU 2022-01 became effective for all entities. Also incorporated discussion from former Chapter 9 into this section.
3.2.1.4.1	Illustrative Examples	Added section to provide examples of how to apply the portfolio layer method for qualifying fair value hedging relationships and modified Example 3-4.
3.2.6	Hedged Item Measured at Fair Value, With Changes in Fair Value Recognized in OCI	Added discussion related to the application of ASC 815-25-35-6 to portfolio layer method hedging relationships in which the closed portfolio includes both AFS debt securities and assets that are not AFS debt securities. Also removed Changing Lanes, since ASU 2022-01 became effective for all entities, and incorporated final guidance from the standard into this section.
3.5.1.2.3	Portfolio Layer Method Breach	Updated section title and replaced the last-of-layer method guidance with the portfolio layer method guidance since ASU 2022-01 became effective for all entities.
4.2.1.1.2	Choose-Your-Rate Debt	Modified Changing Lanes to include recent FASB activity related to its project on targeted improvements to hedge accounting.
4.2.1.1.3	Prepayable Variable-Rate Debt	Added Example 4-10A to illustrate how to evaluate sufficient forecasted interest payments on a revolver.
5.1.3	Hedging on an After-Tax Basis	Added discussion noting that an entity’s election to hedge foreign currency exposure on either a pretax or an after-tax basis may be made on a hedge-by-hedge basis.
5.3.1.1.5	Hedges of Foreign Currency Exposure on Forecasted Business Acquisitions Prohibited	Expanded Connecting the Dots to include recent FASB activity related to its project on targeted improvements to hedge accounting.
5.4	Net Investment Hedging	Added discussion noting that foreign currency exposures can arise from both consolidated subsidiaries and equity method investments.
6.6.2.1.3	Basis Adjustments for Hedged Items in Fair Value Hedges	Replaced the last-of-layer method guidance with the portfolio layer method guidance since ASU 2022-01 became effective for all entities.
Chapter 7	ASU 2017-12	Reserved chapter because ASU 2017-12 is effective for all entities.
Chapter 9	ASU 2022-01	Eliminated chapter and folded guidance predominantly into Chapter 3 since ASU 2022-01 became effective for all entities.
Appendix A	Comparison of U.S. GAAP and IFRS Accounting Standards	Added discussion noting that the simplified hedge accounting approach for private companies does not formally exist in IFRS Accounting Standards.

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