FASB Holds March 26 Meeting

At its March 26, 2025, meeting, the FASB discussed its projects on (1) improvements to the hedge accounting guidance and (2) credit losses related to current accounts receivable and current contract assets.

The FASB discussed comments received on its proposed Accounting Standards Update (ASU) Hedge Accounting Improvements and made tentative decisions related to the following issues:

• Similar risk assessment for cash flow hedges.
• Hedging forecasted interest payments on choose-your-rate debt instruments.
• Cash flow hedges of nonfinancial forecasted transactions.
• Net written options as hedging instruments.
• Foreign-currency denominated debt instruments as hedging instruments and hedged items (dual hedges).

In addition, the Board made tentative decisions regarding the transition, effective date, and early adoption of the guidance. The Board has directed the staff to draft a final ASU for a vote by written ballot.

For more information, see the tentative Board decisions on the FASB’s Web site.

The FASB discussed comments received on its proposed ASU Measurement of Credit Losses for Accounts Receivable and Contract Assets for Private Companies and Certain Not-for-Profit Entities. The Board endorsed a number of the Private Company Council’s decisions related to the project, including those on the scope of the guidance, the recognition and measurement practical expedient, disclosure, transition, and effective date. The Board has directed the staff to draft a final ASU for vote by written ballot.

For more information, see the tentative Board decisions on the FASB’s Web site.