FASB Proposes Guidance to Assist in Transition Away from Interbank Offered Rates
The FASB issued a proposed ASU that is intended to ease the
potential accounting burden as it relates to reference rate reform. In
light of the risk of the cessation of the London Interbank Offered Rate
(LIBOR) and global regulatory efforts toward reference rate reform, the
FASB has proposed a number of optional expedients and exceptions for
contracts, hedging relationships and other transactions that are likely
to be impacted by reference rate reform.