FASB Proposed Changes Presentation


March 2017

The proposal would remove today’s requirement to separately measure and report hedge ineffectiveness. Instead, all changes in the fair value of a derivative in a hedging relationship would be recognized in either other comprehensive income (OCI) (for cash flow and net investment hedges) or to the financial statement line item being hedged (for fair value hedges). All amounts deferred in OCI would be reclassified in to earnings during the period in which the hedged transactions occur, or when it becomes probable that the hedged transactions will not occur.

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