• Planned changes to hedge accounting near completion

    The FASB completed the technical deliberations on its planned changes to hedge accounting by agreeing to simplify a piece of the test businesses perform to prove that a hedging transaction is a legitimate risk management tool. The board agreed to add the measurement of credit risk in a specialized type of foreign exchange swap to the list of items that can be excluded from the assessment of hedge effectiveness.
  • Pension accounting amendment requires employers to provide details of pension costs

    The FASB published an update to U.S. GAAP that aims to improve the presentation requirements for pension and other postretirement benefit costs. The update calls for companies and not-for-profit organizations that offer postretirement benefits to present the service cost, which is the amount an employer has to set aside each quarter or fiscal year to cover the benefits, in the same line item with other current employee compensation costs.
  • Guidance is updated for benefit plans with master trust investments

    The FASB published an update to U.S. GAAP that will require new presentation and disclosure requirements for employee benefit plans that have interests in master trusts. Plan participants and regulators want to know more information about investments in master trusts so they can assess an employee benefit plan’s current and future abilities to make payouts, the FASB said.