ISDA Submits Letter to FASB on Scope of Fair Value Option

On June 8, ISDA submitted a letter requesting that the Financial Accounting Standards Board (FASB) expands the scope of the fair value option that is provided under Topic 825, Financial Instruments to include physical commodity inventories as well as executory contracts related to physical commodities (eg, storage, transportation, non-derivatives purchase or sale contracts) that are managed on a fair value basis. Given the challenges and significant operational cost that exist with applying fair value hedge accounting to the substantial majority of these positions, having an option to measure certain physical commodity inventories and related executory contracts at fair value would provide a practical and simplified solution.

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ISDA AGM Studio: Jacques Vigner, BNP Paribas

Jacques Vigner, ISDA board member and chief strategic oversight officer for global markets at BNP Paribas, speaks with Mark Gheerbrant, global head of risk and capital at ISDA, on the key obstacles to a consistent, risk-appropriate capital framework and how to...

ISDA AGM Studio: Future Leaders in Derivatives

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