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.