On August 28, 2017, the FASB issued ASU 2017-12,1 which amends the hedge accounting recognition and presentation requirements in ASC 815.2 The Board’s objectives in issuing the ASU are to (1) improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities by better aligning the entity’s financial reporting for hedging relationships with those risk management activities and (2) reduce the complexity of and simplify the application of hedge accounting by preparers.
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