The FASB has issued Accounting Standards Update (ASU) No. 2022-01, Fair Value Hedging —
Portfolio Layer Method, which amends the guidance in ASU
2017-12, Targeted Improvements to Accounting for Hedging Activities. Among
other things, that guidance established the “last-of-layer” method for making the
fair value hedge accounting for these portfolios more accessible. The ASU renames
that method the “portfolio layer” method and addresses feedback from stakeholders
regarding its application.
For more information, see the press release on the FASB’s Web site.