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Chapter 8 — Reference Rate Reform (ASC 848)

8.3 Summary of ASU 2021-01

8.3 Summary of ASU 2021-01

As briefly discussed in Section 8.1, the FASB issued ASU 2021-01 in January 2021 to expand the scope of ASC 848 in response to discounting transition activities in the marketplace. The optional amendments in ASU 2021-01 are effective for all entities as of March 12, 2020, through December 31, 2024.16 See Section 8.3.6 for more information on the ASU’s effective and expiration dates.

Footnotes

16
See footnote 2.
17
See footnote 2.
18
See footnote 2.
19
See footnote 2.
20
Under ASU 2021-01, if an entity adopts any of the amendments related to a hedging relationship and the entity is either (1) a private company that is not a financial institution as described in ASC 942-320-50-1 or (2) a not-for-profit entity (other than a not-for-profit entity that has issued, or is a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or an OTC market), the entity is required to update its hedge documentation before the next interim (if applicable) or annual financial statements are available to be issued. All other entities that adopt any such amendments are required to update their hedge documentation no later than when those entities perform the first quarterly hedge effectiveness assessment after making any elections in the ASU for that hedging relationship.
21
See footnote 2.
22
See footnote 2.
23
See footnote 2.