FASB Holds February 7 Meeting

At its February 7, 2024, meeting, the FASB discussed its project on improvements to the hedge accounting guidance in ASC 815. Specifically, the Board addressed comment-letter feedback received on one of the topics in its November 2019 proposed Accounting Standards Update Codification Improvements to Hedge Accounting — namely, “contractually specified components in cash flow hedges of nonfinancial forecasted transactions.” Aspects of this issue on which the Board reached tentative decisions included (1) the model for hedging nonfinancial components and (2) hedging nonfinancial components in contracts accounted for as derivatives.

The Board expects to continue deliberating these issues at a future meeting. For more information, see the Tentative Board Decisions on the FASB’s Web site.