9.6 Effective Dates and Transition
ASU 2022-01’s amendments are effective as follows:
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For public business entities, fiscal years beginning after December 15, 2022, and interim periods within those fiscal years.
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For all other entities, fiscal years beginning after December 15, 2023, and interim periods within those fiscal years.
The guidance may be early adopted if an entity has adopted ASU
2017-12 for the corresponding period.
An entity that elects a multiple-layer hedging strategy should apply
the guidance in ASU 2022-01 prospectively. Further, aside from the disclosure
requirements in other areas of U.S. GAAP, an entity should apply the amendments
related to the fair value hedge basis adjustments under the portfolio layer method
on a modified retrospective basis by making a cumulative-effect adjustment to the
opening balance of retained earnings. An entity may choose to apply the other GAAP
disclosure requirements prospectively or retrospectively.
In addition, as of the adoption date, an entity may reclassify debt
securities that qualify as being in a portfolio layer hedging relationship from the
HTM category to the AFS category if the entity intends to include those securities
in a portfolio designated in a portfolio layer method hedge. An entity must
determine which securities to reclassify within 30 days of the adoption date of the
ASU and must include those reclassified securities within a portfolio layer method
hedging relationship within those 30 days.