FASB Holds June 24 Meeting

At its June 24, 2026, meeting, the FASB discussed its project on hedge accounting. The discussion focused on the characteristics of a possible new accounting model that could significantly change the current hedge accounting model. The FASB notes in the Board meeting handout that this “new model could focus on how an entity uses derivatives to manage its risk position” and, accordingly, may be called “risk management accounting” rather than “hedge accounting.” The Board gave the staff suggestions for how it could conduct its ongoing research on this topic, but no decisions were made at the meeting.

In addition, the Board added to its technical agenda a project on removing or replacing references to the London Interbank Offered Rate (LIBOR) in the FASB Accounting Standards Codification. LIBOR references would be replaced with references related to rates based on the Secured Overnight Financing Rate (SOFR). The Board has directed the staff to draft a proposed ASU on this topic for a vote by written ballot.

The Board also decided, after discussing stakeholder feedback on financial key performance indicators for business entities, not to add this project to its technical agenda. As a result, the Board also removed the project from its research agenda.

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