FASB Issues ASU on Transition Away From Interbank Offered Rates

The FASB has issued Accounting Standards Update (ASU) No. 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The ASU provides “optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued.”

For more information, see the press release, FASB in Focus, and educational video on the FASB’s Web site.