The Financial Accounting Standards Board ("FASB") requested comments on a proposed "Accounting Standards Update" aimed at easing potential accounting burdens on loan market participants, including significant operational challenges and issues in hedge accounting effectiveness, presented by the LIBOR transition. The proposal would apply contract modifications or hedging relationships that currently reference LIBOR or another reference rate that is expected to be discontinued. The proposal would not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022.
Comments on the proposed update must be submitted by October 7, 2019.
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