FASB Issues Proposed ASU on Hedge Accounting
May 5, 2021
The FASB has issued a proposed Accounting Standards Update (ASU), Derivatives and Hedging (Topic 815): Fair Value Hedging — Portfolio Layer Method. The proposal would “expand the current single-layer model to allow multiple-layer hedges of a single closed portfolio of prepayable financial assets or one or more beneficial interests secured by a portfolio of prepayable financial instruments under the method.” In addition, the “last-of-layer” method would be renamed the “portfolio layer” method.
Comments on the proposed ASU are due by July 5, 2021. For more information, see the press release on the FASB’s Web site.