FASB Proposes Enhancements to Guidance on Reference Rate Reform

The FASB has issued a proposed Accounting Standards Update (ASU), Reference Rate Reform (Topic 848) and Derivatives and Hedging (Topic 815): Deferral of the Sunset Date of Topic 848 and Amendments to the Definition of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate. The proposal would “extend the period of time preparers can utilize the reference rate reform relief guidance and expand the Secured Overnight Financing Rate (SOFR)-based interest rates available as benchmark interest rates.”

Comments on the proposed ASU are due by June 6, 2022. For more information, see the press release on the FASB’s Web site.