FASB Issues ASU on Hedge Accounting

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.