News Release 09/08/16


Norwalk, CT, September 8, 2016—The Financial Accounting Standards Board (FASB) today issued a proposed Accounting Standards Update (ASU) that would make targeted improvements to the accounting guidance for hedging activities. Stakeholders are encouraged to review and provide comment on the proposed ASU by November 22, 2016.

"Stakeholders shared concerns that current hedge accounting requirements do not faithfully portray the economic results of an institution's risk management activities," stated FASB Chairman Russell G. Golden. "The proposed ASU sets forth the Board's recommendations for improving this area of financial reporting, and for simplifying the application of hedge accounting guidance without compromising the quality of financial reporting information provided to investors."

This Exposure Draft contains proposals for improving how the economic results of an institution's risk management activities are portrayed by Additionally, the Exposure Draft contains proposals to simplify the application of hedge accounting by: To elicit additional feedback on its proposals, the Board tentatively has scheduled two public roundtable meetings at its Norwalk, Connecticut offices on Friday, December 2, 2016. Those interested in participating in one of the roundtables are asked to submit written comments on the proposed ASU by Friday, November 4, 2016.

The Board will determine an effective date for the ASU after redeliberating all comments received during the comment period and from the public round table meetings. Early application of the proposed amendments would be permitted at the beginning of any fiscal year before the effective date.

More information about the proposed ASU—including a FASB in Focus  overview—is available at A CPE webcast is planned for 1:00 p.m. Eastern Daylight Time on Monday, October 17, 2016; registration will be announced on the FASB website in the coming weeks.

About the Financial Accounting Standards Board

Established in 1973, the FASB is the independent, private-sector, not-for-profit organization based in Norwalk, Connecticut, that establishes financial accounting and reporting standards for public and private companies and not-for-profit organizations that follow Generally Accepted Accounting Principles (GAAP). The FASB is recognized by the Securities and Exchange Commission as the designated accounting standard setter for public companies. FASB standards are recognized as authoritative by many other organizations, including state Boards of Accountancy and the American Institute of CPAs (AICPA). The FASB develops and issues financial accounting standards through a transparent and inclusive process intended to promote financial reporting that provides useful information to investors and others who use financial reports. The Financial Accounting Foundation (FAF) supports and oversees the FASB. For more information, visit