ISDA Letter to FASB on Hedge Accounting Improvements

On November 25, ISDA submitted a comment letter to the Financial Accounting Standards Board (FASB) in response to its exposure draft (ED) on File Reference No. 2024-ED200, Derivatives and Hedging (Topic 815) – Hedge Accounting Improvements. ISDA supports the FASB’s proposals in the ED and believes it achieves the FASB’s objective of improving the application and relevance of the derivatives and hedging guidance.

In the response, ISDA included an appendix that summarizes other opportunities to improve accounting and reporting for hedge accounting under Topic 815. Those issues are discussed in a recent ISDA whitepaper, which highlights a number of other issues across cashflow, fair value and foreign currency hedge accounting, which ISDA believes can be addressed through standard setting.

Documents (1) for ISDA Letter to FASB on Hedge Accounting Improvements

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